Sri Lanka Tea Exporters Association calls for US tariff exemption, warns of tea export risks

Published Apr 24, 2025

Tridge summary

The United States is the world's second largest tea importer, with imports exceeding $500 million in 2024, and Sri Lanka has a 20% share in the hot tea market segment. In 2024, Sri Lanka exported 6.4 million kilograms of tea worth $45 million to the United States, a 22% increase and 11% increase in volume and value respectively. However, the imposition of a reciprocal tariff has led to the suspension of orders by US buyers, but some have been resumed with a 10% import tax. There are concerns about the potential impact on Sri Lanka's tea export target of $1.5 billion in 2025 and the livelihoods of growers, including small farmers, if the 44% high tariff proposed to be imposed on Sri Lanka is restored, as it would subject Sri Lanka to a higher tariff than India and Kenya.

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Original content

According to public data, the United States is the world's second largest tea importer, with imports exceeding US$500 million in 2024. Although domestic tea consumption in the United States is dominated by iced tea (accounting for about 80%), Sri Lanka has a 20% share in the hot tea market segment. In 2024, Sri Lanka exported 6.4 million kilograms of tea worth US$45 million to the United States, up 22% and 11% year-on-year respectively. 65% of the exports were value-added products such as tea bags and instant tea, with an average FOB price of US$7 per kilogram, far higher than the national average price of US$5.83. The association pointed out that as of April 11, 2025, nearly 300,000 kilograms of Sri Lankan tea worth US$3.24 million had been shipped to the United States before the announcement of the "reciprocal tariff", and another 21,000 kilograms of tea worth nearly US$480,000 had arrived at US ports waiting for customs clearance. At the same time, US buyers have suspended ...

Source: Foodmate