Sri Lankan Rubber Exporters Face Looming Tariff Crisis
Sri Lankan rubber exporters risk losing the US market due to high tariffs imposed by the Trump administration. With a current 30 per cent tariff, exporters struggle to compete against Indonesia. A government delegation is negotiating a deal to benefit from lower or zero tariffs.
- Country:
- Sri Lanka
As the August 1 deadline for tariff negotiations nears, Sri Lankan rubber exporters warn of losing their US market foothold unless favorable adjustments are made. The industry currently battles tariffs exceeding those of regional competitors, notably Indonesia.
Spokesman Kamal Silva indicated a 15-20 per cent tariff is essential for keeping Sri Lanka's competitive edge over Indonesia, which has benefited from lower tariffs. The US market accounts for a significant portion of Sri Lanka's rubber export revenue, approximately USD 300 million annually.
Deputy Economic Development Minister Anil Jayantha revealed ongoing negotiations with the US, aiming to secure better tariff deals for over a thousand items. Previously, the US reduced its tariffs on some Sri Lankan exports, but challenges persist as clothing industries also voice concerns over competitive pricing.
(With inputs from agencies.)
Google News