Sri Lankan rubber exporters have raised concerns ahead of the August 1 deadline for further negotiations on U.S. tariffs imposed during the Trump administration.
Exporters warned that without a favorable deal, Sri Lanka risks losing its share in the U.S. rubber market.
Kamal Silva, a spokesman for the exporters, said a tariff rate of 15–20% would help Sri Lanka stay competitive, especially against Indonesia.
“With the current 30% tariff, doing business with the U.S. is becoming extremely difficult,” Silva stated, noting that Indonesia already holds a clear advantage.
He added that Sri Lanka earns approximately USD 300 million annually from rubber exports to the U.S.
Dhammika Fernando, spokesman for the Sri Lankan Free Trade Zone Exporters’ Association, echoed these concerns, stating that Indonesia benefits significantly under the new U.S. tariff structure.
Fernando said that according to government sources, the U.S. may allow tariff-free access for 1,600 items and services, which could benefit Sri Lanka if finalized.
A Sri Lankan government delegation is currently in Washington to negotiate a revised trade agreement.
Deputy Economic Development Minister Anil Jayantha said discussions were ongoing regarding 1,161 items, and the U.S. has so far offered zero tariffs for about 80 of them.
In April, the U.S. imposed a 44% tariff on Sri Lankan goods, later reduced to 30% under a revised letter from the Trump administration.
Sri Lanka’s apparel industry also warned that high tariffs could hurt its exports to the U.S., making local products uncompetitive.
Sri Lanka exports around USD 3 billion worth of goods to the U.S. annually, while imports from the U.S. total about USD 300 million.
