Exporters warn of economic fallout from proposed US 30% tariffs

Saturday, 12 July 2025 01:16 - - {{hitsCtrl.values.hits}}

Calls on Govt. to ramp up efforts to secure alternative markets with an intensified focus on Europe, Middle East and other emerging regions
Says Sri Lanka’s proposed tariff rate remains disproportionately higher compared to others in region
Opines trade missions must take on a more proactive role in identifying opportunities and supporting exporters

The Exporters Association of Sri Lanka (EASL) yesterday expressed deep concern over the recent letter issued by US President Donald J. Trump, outlining the intention to impose a 30% tariff on Sri Lankan exports to the United States starting 1 August 2025.

The Association warned that the move could deliver a severe blow to the country’s key export sectors, especially apparel and rubber-based products.

“We recognise and appreciate the efforts made by the Sri Lankan negotiating team in their continued engagement on this matter. It is our hope that these negotiations will persist with urgency and determination, as the proposed tariff would have a significant impact on key export sectors, particularly apparel and rubber-based products,” EASL said in a statement.

It also expressed concerns that the proposed tariff on Sri Lanka is notably higher than that on other countries, such as Vietnam at 20%, and India, which has also received a lower rate.

“We urge the Government to proactively explore and secure alternative markets for Sri Lankan exports,” they added.

The EASL called on the Government to ramp up efforts to secure alternative markets with an intensified focus particularly on Europe, the Middle East, and other emerging regions through Sri Lanka’s overseas trade missions.

“Sri Lanka’s diplomatic and commercial representatives abroad must now play a significantly expanded and proactive role in supporting our exporters and identifying new trade opportunities,” they pointed out.

While reaffirming their hope for a constructive resolution with the US, the Association stressed the importance of long-term strategic planning.

“It is imperative that Sri Lanka simultaneously takes strong steps to diversify and safeguard its export economy against future external shocks,” the EASL statement added.

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