SHABIYA ALI AHLAM 
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US tariff hits SL at 30%
Leaves door open for talks
- Downward revision marks the steepest tariff reduction, so far, among the countries targeted by the Trump administration
- Sri Lanka’s rate lowered by 14 percentage points
- Urges SL to “please understand” that the 30% number is far less than what is needed to eliminate the trade deficit disparity between the two nations
- Points out the administration may reconsider the tariff if Sri Lanka opens its markets and removes trade barriers
The United States will impose a 30 percent tariff on all goods exported from Sri Lanka starting 1 August, softening its earlier proposal of a 44 percent levy announced in April under its reciprocal tariff strategy.
The downward revision marks the steepest tariff reduction, so far, among the countries targeted by the Trump administration, with Sri Lanka’s rate lowered by 14 percentage points. Cambodia followed with a 13 percent cut, while countries including Brunei, Japan, and the Philippines saw their tariff rates increase by 1 to 3 percent.
In a letter addressed to President Anura Kumara Dissanayake late last evening, the White House said the move reflects the United States’ intent to continue working with Sri Lanka despite the wide trade gap with the country.
“It is a great honor for me to send you this letter in that it demonstrates the strength and commitment of our trading relationship, and the fact that the United States of America has agreed to continue working with Sri Lanka, despite having a significant trade deficit with your great country,” the letter stated.
“Starting on August 1, 2025, we will charge Sri Lanka a Tariff of only 30 percent on any and all Sri Lankan products sent into the United States, separate from all sectoral tariffs. Goods transshipped to evade a higher tariff will be subject to that higher tariff.”
President Trump urged the Sri Lankan government to “please understand” that the 30 percent number is far less than what is needed to eliminate the trade deficit disparity the US has with the island nation.
The US also warned that the tariff would be raised if Sri Lanka decides to increase its own trade levies.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 30 percent that we charge.”
The letter highlighted that the tariffs are intended to address Sri Lanka’s tariff, and non-tariff policies and trade barriers, which it said have caused “unsustainable” trade deficits against the United States.
However, President Trump asserted there will be no tariff if Sri Lanka, or companies within the country decide to build or manufacture products within the United States.
“In fact, we will do everything possible to get approvals quickly, professionally, and routinely—In other words, in a matter of weeks,” the White House letter stated.
However, he noted that if Sri Lanka wishes to open its closed trading markets to the United States, and eliminate the tariff, and non-tariff, policies and trade barriers, the US will, perhaps, consider an adjustment to the letter.
According to the U.S. Treasury, Sri Lanka is among a group of countries that maintain high tariffs while accounting for significant trade volumes with the United States. Tariffs charged to the US by Sri Lanka, including currency manipulation and trade barriers, is 88 percent.
The tariff letters sent this week followed an earlier round that targeted countries including Japan, South Korea, Cambodia, and Thailand, with final rates ranging between 20 percent and 40 percent.
The U.S. stated that these tariffs “may be modified, upward or downward, depending on our relationship with your country.”
Earlier this week, Economic Development Minister Dr. Anil Jayantha Fernando told parliament the government was optimistic it would avoid a blanket rate hike after Sri Lanka was not listed among the 14 countries that received formal tariff letters on Monday. He said the outcome reflected ongoing trade talks between Colombo and Washington.
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