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Plantation sector sounds alarm over 30% US tariff

Daily FT

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July 28, 2025

Calls on Govt., to engage directly with USTR seeking relief for agricultural commodities like tea and medical-grade rubber ■ Cites tea and rubber as vital sectors for rural employment, conducts strong ethical and sustainability credentials in global markets ■ Advocates for temporary relief measures for affected producers, including duty drawback schemes, retraining programs for affected workers, export marketing assistance to mitigate disruptions

THE Planters' Association of Ceylon (PA) has expressed grave concern over the United States' decision to impose a 30% tariff on Sri Lankan tea and rubber exports, set to take effect from 1 August.

The Association warns that this move could devastate two of Sri Lanka's most historic and employment-intensive sectors, tea and rubber undermining decades of market-building and trade diplomacy.

PA is calling for urgent interventions, particularly as key competitor nations like Vietnam and India are already in talks to secure reduced tariffs, while Indonesia has already finalised a preferential trade deal.

Issuing a statement, PA is urging the Government to engage directly with the US Trade Representative (USTR), seeking relief for agricultural commodities like tea and medical-grade rubber. These sectors are vital for rural employment and carry strong ethical and sustainability credentials in global markets.

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