30% U.S. Tariff: Sri Lanka’s Tea and Rubber exports under threat
- By KirshCNL
- July 28, 2025
- News, Political
- Sri Lanka, Tea & Rubber, US tariff
- 0 Comments
The Planters’ Association of Ceylon (PA) has voiced serious concerns following U.S. President Donald Trump’s announcement of a 30% tariff on all goods imported from Sri Lanka, effective August 1, 2025.
The U.S. is one of Sri Lanka’s key markets for both tea and rubber. In 2024, the U.S. bought 6.4 million kg of Ceylon Tea worth USD 45 million. Many of these were high-value products like packaged and flavored teas.
Exporters say this tax has already caused major disruptions, with millions of rupees’ worth of tea shipments held up or cancelled.
The rubber industry is also facing serious problems. Most of Sri Lanka’s solid tyre exports go to the U.S., and the new tax makes local products too expensive. Some companies have already stopped sending shipments, fearing buyers will switch to cheaper countries like Vietnam or India.
The PA is urging the government to talk to U.S. officials and find a solution.
They also request emergency support for affected workers and businesses, and stress the need to explore new markets to protect the future of these important industries.
