The Ceylon Chamber of Commerce has expressed concern over the United States’ announcement of new labour-related tariffs, including a proposed 12.5% tariff on exports from Sri Lanka.

In a statement, the Chamber noted that the development comes while Sri Lanka was continuing discussions with the US following the suspension of previously announced reciprocal tariffs and was seeking a more favourable trading arrangement.

The Chamber warned that the additional tariff could undermine the competitiveness of Sri Lankan exports, particularly when several other countries face a lower tariff rate of 10%.

It said the move comes at a challenging time for Sri Lanka’s export sector, noting that apparel and tea exports have declined by 7% and 6% respectively during the first four months of 2026.

The Chamber highlighted Sri Lanka’s reputation as a responsible sourcing destination, with industries maintaining high labour, environmental and governance standards, while also strengthening regulatory frameworks and ethical business practices.

Calling for urgent action, the Chamber urged the Government to engage proactively and at the highest levels with the United States to understand the basis for the tariff and present Sri Lanka’s case.

“The country should make every effort to secure a reduction in the proposed tariff and ultimately seek its removal altogether,” the statement said.

The Chamber also stressed the importance of returning Sri Lanka to a lower tariff band while continuing discussions aimed at creating a more competitive and predictable trading environment.

Noting the importance of the US market to Sri Lankan exports, the Chamber said timely engagement and clear communication would be critical to maintaining confidence among exporters and investors.

The Ceylon Chamber said it stands ready to support efforts to safeguard Sri Lanka’s export competitiveness and long-term economic interests.