US Tariffs Linked to Iran Trade Pressure Tea Prices 📈

US President Donald Trump has announced a 25% tariff on all goods from countries "doing business" with Iran, effective immediately. The move aims to isolate Tehran as anti-government protests intensify following a sharp collapse in the Iranian rial and 40%+ inflation. • Market Impact: Sri Lankan tea auction prices fell steeply this week, following a decline last week, as exporters fear the new US order could encompass food trade. Iran remains a critical destination for Ceylon Tea, importing US$ 62.28 Mn in 2024. • Trade Exposure: The US is Sri Lanka's largest export market (US$ 3.0 Bn in 2024 imports), while trade with Iran totaled approximately US$ 70 Mn in 2024. A 25% tariff on US exports would severely impact key sectors like apparel & textiles (US$ 3.08 Bn Jan-July 2025) and rubber products. • Key Figures: • US Goods Imports from SL: US$ 3.0 Bn (up 6.1% YoY). • SL Exports to Iran: US$ 67.81 Mn (predominantly tea). • Tariff Rate: 25% on all business with the US for trading partners of Iran.