Tea exporters urge tariff-free access to US market

THE Tea Exporters Association of Sri Lanka (TEA) has raised concerns over the recently imposed reciprocal tariffs by the US, warning that the country's lucrative tea exports to the US market could face serious setbacks unless the issue is resolved within the 90-day grace period.

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The US is an important tea market and rank as the second largest buyer of tea in the world in terms of value of tea imports. As per available information it has imported over $ 500 million worth of tea last year.

In a statement issued, the TEA pointed out that although USA is a predominantly an iced tea market with a share of 80 % of the domestic tea consumption, Sri Lanka with 20% of share, holds a significant position in the hot tea segment of the US tea market. Sri Lanka exported a volume of 6.4 million kg of tea to US at the value of $ 45 million last year which is an increase of 22 % in volume and 11% in value over the exports in 2023.