Sri Lankan rubber industry sounds “red alert”, demands top-level US talks to avert 30% tariff disaster
The Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) has issued an urgent and unequivocal demand for the government to initiate immediate, high-level engagement with US authorities, declaring the newly imposed 30 percent tariff on Sri Lankan rubber exports an existential threat to the nation’s US$ 1 billion industry and over 150,000 rural livelihoods.
SLAMERP Chairman Pushpika Janadheera stated the sector, crucial as Sri Lanka’s third-largest export earner and still recovering from recent crises, cannot withstand the devastating impact of the tariff set to take effect on August 1st without swift, decisive diplomatic intervention from Colombo.
Janadheera emphasised the crippling competitive disadvantage the 30 percent levy creates, particularly highlighting the severe pressure on tyre and glove exports where key rivals face significantly lower barriers.
“Malaysia faces 25 percent, Vietnam only 20 percent, and India’s pending rate could be lower still – this disparity makes our products uncompetitive overnight,” he warned.
The threat is especially acute for solid tyres, where over 50 percent of global production is exported to the US market, which drives 80 percent of global demand for specialised designs. Similarly, glove exporters, including producers of essential medical gloves and PPE are “especially disadvantaged” compared to competitors in Malaysia and Vietnam. SLAMERP stressed these essential health products warrant special consideration in any negotiations.
The Association underscored that the stakes extend far beyond corporate losses, directly threatening the survival of rural communities. With over 150,000 Sri Lankans involved in rubber cultivation and tens of thousands more employed in manufacturing, Janadheera framed the crisis in human terms: “This is not just about companies. It’s about entire rural communities whose livelihoods depend on the rubber sector.”
Furthermore, he cautioned that prolonged uncertainty and punitive tariffs would freeze vital foreign investment needed for the sector’s growth. “No investor will commit to an industry facing unstable and unpredictable trade conditions,” he stated.
SLAMERP stressed that the government must treat this as a national economic emergency.
“We urge the government to recognise the seriousness of this development and begin active negotiations with US authorities at the highest level immediately,” Janadheera insisted.
He stressed the imperative goes beyond commerce: “This is about much more than trade. It’s about safeguarding livelihoods, protecting rural incomes, and preserving one of Sri Lanka’s most critical export sectors.
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