SL’s plantation sector sounds alarm over 30% US tariff

The Planters’ Association of Ceylon (PA) has expressed grave concern over the US’ decision to impose a 30 percent tariff on Sri Lankan tea and rubber exports, set to take effect from August 1.

- 

The PA 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.

The 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.

Tea industry at a critical juncture

Ceylon Tea had enjoyed a zero-duty access to the US markets and with this move, there will be 30 percent duty slammed on tea exports. This decision for 30 percent will affect the country’s tea exports to the US markets. In 2024, the US imported 6.4 million kilogrammes of Ceylon Tea, valued at US $ 45 million, reflecting a 22 percent increase in volume and an 11 percent increase in value over 2023. Of these exports, 65 percent were value-added products such as packaged, blended, flavoured and instant teas, indicating strong demand for premium Sri Lankan offerings.