The Colombo Rubber Traders Association (CRTA) is deeply concerned about the recent imposition of a 44% blanket tariff by the United States on all imports from Sri Lanka, particularly its devastating impact on Sri Lanka’s natural rubber industry.
The natural rubber industry contributes significantly to employment and foreign exchange earnings. Since the present tariff is 12.5%, the additional 44% will raise the total tariff to 56.5%, making Sri Lankan rubber exports highly uncompetitive in the US market.
This is expected to have a far-reaching impact on rubber tappers, their families, and Sri Lanka’s broader economy.
The natural rubber sector in Sri Lanka supports over 150,000 rubber tappers/harvesters, most of whom work in rural areas. The 56.5% tariff imposed by the United States has made Sri Lankan rubber exports increasingly uncompetitive.
In 2023 and 2024, Sri Lanka’s natural rubber exports to the United States were valued at USD 1.2 million. In comparison, exports in 2022 amounted to USD 1.9 million. However, the implementation of this tariff is expected to further erode the competitiveness of Sri Lankan rubber in the US market.
The consequences of this tariff extend beyond just the rubber sector. Rubber tappers.
The CRTA urges immediate diplomatic engagement with the US authorities to negotiate a significant reduction or removal of the 44% tariff and diversification of export markets for Sri Lankan natural rubber to reduce reliance on the US market and extend support for local rubber farmers and businesses with a relief packages for affected rubber farmers and businesses.
