Reciprocal tariffs Sri Lanka continues engagement with U.S. for favourable outcome

• Minister Samarasinghe says the government was continuously in touch with the U.S. authorities
• Sri Lanka had two rounds of discussions in Washington earlier, but no decision yet
• SL’s apparel sector has already raised concerns that the exports will take a major hit  
• Sri Lanka’s exports to the U.S. is around US $ 3Bn
• Minister denies the need for any delegation to visit Washington for talks at the moment
• The U.S. initially proposed a 44 per cent reciprocal  tariff

By Kelum Bandara  

In the wake of U.S. President Donald Trump firing off  letters to 14 countries announcing new reciprocal tariff rates while  delaying the implementation of the same for other countries till August  1, Sri Lanka continues to remain engaged with the U.S. authorities for a  positive outcome, according to a Minister.  

The Trump administration announced 44 per cent tariffs  initially. Later, his government introduced a 90-day pause which  expired recently. After that, he sent letters to the heads of 14  countries announcing revised tariff rates. Accordingly, he has announced  a 40 per cent tariff on goods from Myanmar and Laos, a 36 per cent  on goods from Thailand and Cambodia, a 35 per cent on goods from Serbia  and Bangladesh, a 32 per cent on Indonesia, a 30 per cent on South  Africa and a 25 per cent on goods from Malaysia and Tunisia. Japan  and South Korea are also among the countries on the list, as reported  widely in the international media.  

Sri Lanka had two rounds of discussions in Washington with  the Office of the US Trade Representative earlier. Besides, virtual  engagements took place.  

Asked about the steps being taken to secure relief in terms  of reciprocal tariffs, Minister of Trade, Commerce, Food Security and  Cooperative Development Wasantha Samarasinghe said that the government  is continuously in touch with the U.S. authorities to get the maximum  possible redress at the moment.  

However, he said there is no need for any delegation to visit Washington for talks at the moment.  

The U.S. initially proposed a 44 per cent reciprocal  tariff. The current effective tariff rate is the MFN rate plus 10 per  cent, which applies to 95.6 per cent of Sri Lanka’s exports to the U.S. worth nearly US $ 3 billion.   

Sri Lanka’s apparel sector has already raised concerns that  the exports will take a major hit if the 44 –per cent tariff rate is  imposed. According to the Free Trade Zone Manufacturers’ Association  (FTZMA), the proposed tariffs by US President Donald Trump may trigger  the loss of up to 50,000 jobs stifling the country’s economic growth.