Courtesy The Daily Mirror

• Seek urgent resolution & diversification

Sri Lanka›s crucial export sector faces significant disruption following a warning from the Exporters Association of Sri Lanka (EASL) regarding a proposed 30 percent tariff on all exports to the United States, outlined in a recent letter from President Donald Trump. The tariff, slated to commence on August 1, 2025, has sent shockwaves through the island nation›s trade community.

The EASL issued a statement expressing deep concern” over the potential levy, highlighting its disproportionate impact compared to tariffs proposed for other nations.

 «It is also concerning 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,» the association stated.

The association identified key export sectors as particularly vulnerable, with apparel and rubber-based products expected to bear the brunt of the impact. Sri Lanka is a major supplier of garments to the US market, and rubber products represent another significant export category. A 30% tariff would severely erode the competitiveness of these goods, potentially leading to order cancellations, factory closures, and significant job losses within Sri Lanka.

While acknowledging and appreciating the efforts made by the Sri Lankan negotiating team,” the EASL stressed the critical need for these discussions to continue with urgency and determination.” A constructive resolution with the US administration remains the preferred outcome.

Simultaneously, the EASL issued a strong call for the Sri Lankan government to proactively explore and secure alternative markets. The association urged intensified efforts through our trade missions, particularly in Europe, the Middle East, and other emerging regions,” demanding a significantly expanded and proactive role” for the country’s diplomatic and commercial representatives abroad in identifying new trade opportunities and supporting exporters.

The statement underscored the broader lesson for Sri Lanka’s economy. While we remain hopeful for a constructive resolution with the United States, it is imperative that Sri Lanka simultaneously takes strong steps to diversify and safeguard its export economy against future external shocks,” the EASL declared. The proposed Trump tariff underscores the vulnerability of relying heavily on a single major market and the pressing need for a more diversified export strategy.