Economy
Trump settles for 30% tariff on Sri Lanka, down from 44% proposed earlier
US President Donald Trump has settled for a 30% tariff on imports from Sri Lanka, down from 44% proposed in April.
He announced the move in a letter to President Anura Kumara Disanayake dated 9 July 2025.
Analysts welcomed the move, which is lower than the tariff slapped on Laos and Myanmar (40%), Cambodia, Thailand (36%), Bangladesh (35%), and Indonesia (32%). However, others described it as higher than what Sri Lanka was lobbying for, which was 20%.
Japan, Malaysia, and the Philippines have been slapped with a 25% tariff.
The US remains the largest export market for Sri Lanka, accounting for 27% ($ 3 billion) of the total manufactured exports ($ 12.8 billion) as of 2024—out of which textile and apparel exports accounted for 64% of the total exports
to the US.
The reciprocal action by Trump was due to the trade imbalance of $ 2.6 billion in 2024 in favour of Sri Lanka as against the US.
Treasury Secretary Dr. Harshana Suriyapperuma earlier this week expressed hope that Sri Lanka could expect a favourable stance from the US on the looming reciprocal tariffs.
“We had several rounds of discussions with the US Trade Representative (USTR). They’ve indicated Sri Lanka is in a relatively better position, but at the end of the day, the decision will factor in the broader global trade scenario,” he told journalists. “Our hope is that given our proactive engagement, multiple discussion rounds, and overall cooperation with the USTR, Sri Lanka will get a positive stance,” Dr. Suriyapperuma reiterated.
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