US Imposes New Tariffs on Sri Lankan Exports: What It Means for Trade

New Tariff Announcement

Colombo: The United States has implemented a 20% tariff on exports from Sri Lanka, which is a significant decrease from the previously suggested rate of 24%.

As the deadline for tariff discussions approaches this Friday, officials from Sri Lanka are actively engaged in negotiations to secure an even lower rate.

These tariffs are set to take effect on August 7.

Earlier in April, President Donald Trump had imposed a hefty 44% tariff on Sri Lankan products, which was notably higher than the 88% duty that Sri Lanka had placed on imports from the US.

This rate was subsequently adjusted to 30% last month.

Sri Lankan exporters, who send approximately USD 3 billion worth of goods to the US each year, were hoping for tariffs below 20% to maintain their competitive edge against regional competitors like Vietnam and Bangladesh.