Ceylon Chamber calls for urgent action on US tariff threat

A proposed 12.5% tariff on Sri Lankan exports by the United States sparked deep concern at the Ceylon Chamber of Commerce.

The announcement of these new labour-related tariffs comes whilst Sri Lanka continues discussions with the US following the suspension of previously announced reciprocal tariffs, aiming to secure a more favourable trading arrangement.

The imposition of an additional tariff on Sri Lankan exports risks undermining the competitiveness of key export sectors compared to other nations, which face a lower rate of 10%.

Any increase in trade barriers presents a significant challenge at a time when Sri Lanka works to accelerate export growth, attract investment, and create employment opportunities.

At present, key goods exports like apparel and tea dropped by 7% and 6% respectively in the first four months of 2026.

Sri Lanka built a strong reputation as a responsible sourcing destination, with many industries adhering to high labour, environmental, and governance standards.

The country also made substantial progress in strengthening regulatory frameworks and promoting ethical business practices.

The Ceylon Chamber of Commerce therefore, requests the relevant authorities to engage proactively and at the highest levels with the United States to better understand the basis for the tariff and to present Sri Lanka's case.

Exporters require every effort to secure a reduction in the proposed tariff and, ultimately, to seek its removal altogether.

It remains vital that Sri Lanka seeks to return to the lower tariff band whilst continuing discussions towards achieving a more competitive and predictable trading environment.

Given the importance of the US market to Sri Lankan exports, timely engagement and clear communication on the way forward will prove critical in providing confidence to exporters and investors.

The Ceylon Chamber of Commerce stands ready to support these efforts and work collaboratively with all stakeholders to safeguard Sri Lanka's export competitiveness and long-term economic interests.