Colombo Rubber Traders’ Association warns of industry-wide fallout from 30% US tariff on Sri Lankan rubber goods

• Calls for immediate high-level Govt. action to safeguard exports and rural livelihoods

CRTA Chairman Harin de Silva

The Colombo Rubber Traders Association (CRTA) which is the apex body representing Sri Lanka’s natural rubber industry, yesterday issued a strong statement expressing deep concern over the United States’ recent decision to impose a 30% import tariff on Sri Lankan rubber goods, effective 1 August 2025. 

The Association warned that the move poses a grave threat to Sri Lanka’s rubber exports, especially to value-added segments such as solid tires, gloves, and industrial components.

“While the reduction from 44% to 30% may have averted complete exclusion from the US market, it in no way constitutes a competitive or sustainable solution for our exporters,” CRTA Chairman Harin de Silva said. 

The CRTA calls on the Government to— 1) urgently initiate high-level negotiations with US trade authorities to secure tariff parity with regional peers, 2) establish a transparent and time-bound roadmap for trade dialogue, with industry stakeholders actively involved, and 3) accelerate structural reforms to enhance export competitiveness and reduce production bottlenecks in the rubber sector.

“This isn’t just a trade issue—it’s a national economic emergency. Without swift and strategic diplomatic engagement by the Government, Sri Lanka risks permanent erosion of its US market share, the collapse of rural incomes, and a chilling effect on foreign investment,” he stressed. 

The US remains a critical export destination, accounting for nearly one-third of Sri Lanka’s $1 billion rubber export revenue in 2024. The CRTA notes that the 30% tariff will immediately and disproportionately impact downstream manufacturers and thousands of smallholder rubber growers who already operate under narrow margins due to rising input costs, high domestic taxes, and outdated infrastructure.

“Rubber exports underpin the economic survival of over 150,000 rural Sri Lankan families, and this duty places their future in jeopardy,” de Silva stated. “It undermines decades of effort invested into building a value-added export base and puts us at a distinct disadvantage when regional competitors like Vietnam and India who are either already enjoying lower tariff rates.”

For solid tyres, where Sri Lanka is a global leader, the tariff renders Sri Lankan products significantly less competitive. The same holds true for medical and industrial gloves, which are crucial for global health and safety supply chains. Competing countries such as Vietnam face only 20–25% tariffs, meaning buyers may soon shift sourcing away from Sri Lanka.

While CRTA welcomes any progress in trade relations, the Association stresses that stopping at 30% is not good enough. With global buyers actively seeking alternatives, Sri Lanka must act decisively to protect its long-established reputation as a reliable supplier of high-quality rubber products.

“This is a defining moment for Sri Lanka’s rubber industry. Inaction will cost us markets, jobs, and investment. What we need now is unified, urgent leadership to defend the livelihoods of our rural population and the future of a billion-dollar sector,” the Chairman concluded.

CRTA works in close collaboration with rubber growers, processors, exporters, and policy stakeholders. The CRTA is committed to advancing sustainable trade, ensuring fair market access, and promoting the long-term viability of the rubber sector for the benefit of the national economy and rural communities.