Rubber product exports to US could fall by 28%

Abstract

On 2 April, US President Donald Trump imposed a 44% tariff on Sri Lankan exports to the United States. This tariff significantly affects Sri Lanka's rubber product exports, the country's second-largest export to the US, accounting for 11% and valued at over USD 300 million in 2023.

The reciprocal tariffs imposed across all exporters to the US could potentially reduce overall US demand for rubber products. Consequently, this analysis, conducted using World Bank's SMART partial equilibrium model, reveals that Sri Lanka’s rubber product exports to the US may decline by approximately 28% (over USD 80 million). The model simulated the impact on US demand of an increase in the weighted average tariff for US rubber products to 27%.​