Sri Lanka’s rubber exporters hailed the U.S. decision to lower retaliatory tariffs from 44% to 20%, easing export pressure and strengthening competitiveness in a key foreign exchange market.
Article:
The Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) has expressed deep appreciation to the Government of Sri Lanka for its timely and effective diplomatic efforts, which led to the United States reducing its proposed retaliatory tariff on Sri Lankan rubber exports to 20%, down from the initially suggested 44%.
This revised tariff rate significantly eases pressure on the competitiveness of Sri Lanka’s exports and ensures continuity in one of the country’s most important foreign exchange-earning markets.
A Timely and Strategic Victory
The United States is one of the largest export destinations for Sri Lanka’s rubber-based products, accounting for nearly one-third of the sector’s annual export value. The initial 44% tariff proposal had threatened potential order cancellations, job losses, and long-term erosion of market share.
Thanks to persistent lobbying and high-level government intervention, Sri Lanka has now secured a 20% rate, which greatly improves its position relative to key regional competitors. Although the 20% rate still presents challenges, it marks a significant improvement over the original 44% proposal, which could have severely harmed exporters.
Pushpika Janadheera, Chairperson of SLAMERP, welcomed the development:
“We are immensely grateful to the Government of Sri Lanka—particularly the President, the Minister of Foreign Affairs, and the Minister of Trade—for acting swiftly and decisively to protect our national interests. The reduction of tariffs from 44% to 20% provides critical relief to hundreds of exporters and safeguards the livelihoods of thousands across the country.”
She added, “This outcome shows what can be achieved through close collaboration between the public and private sectors. We also recognize the vital role of our diplomatic mission in Washington D.C., which worked tirelessly to ensure Sri Lanka’s value-added rubber exports received fair consideration.”
Sustaining Competitiveness and Livelihoods
The rubber products industry—spanning industrial gloves, tires, mats, hoses, and medical items—supports the livelihoods of more than 300,000 Sri Lankans. The revised tariff guarantees sustainable access to an export market worth over USD 300 million, stabilizes rural incomes tied to the natural rubber supply chain, and restores confidence among international buyers and investors.
While this development provides welcome relief, SLAMERP emphasized the need for continued strategic collaborationwith global trade partners to ensure long-term market access.
Janadheera noted, “We urge the government to consider complementary domestic policy support—such as extending the SVAT scheme, reducing input costs, and encouraging export diversification—to further strengthen Sri Lanka’s export ecosystem.”
SLAMERP reaffirmed its commitment to work closely with government stakeholders to capitalize on this momentum, support economic recovery, and ensure Sri Lanka remains a trusted global source for high-quality rubber products.