Sri Lanka Seeks to Reduce US Tariffs Amid Economic Strain
Sri Lanka is negotiating with the US to reduce a 44% tariff imposed by President Trump. The tariff pressures local industries by threatening jobs and hindering economic recovery. The Sri Lankan delegation aims to secure a bilateral agreement before the August 1 deadline, as competitors benefit from the tariffs.
- Country:
- Sri Lanka
A Sri Lankan delegation is heading to Washington this week to engage in crucial negotiations with the United States concerning President Donald Trump's tariff policy. The talks are aimed at easing a 44% tariff imposed on Sri Lanka by the Trump administration, which could escalate economic challenges for the island nation.
The delegation, set to depart on July 18, will seek to establish a bilateral agreement to curb the tariff, Foreign Minister Vijitha Herath revealed. The objective is to secure a reduction from the 30% indicated in a recent communiqué from the US, before the negotiation deadline of August 1.
This tariff policy has put significant pressure on Sri Lanka's local industry, risking tens of thousands of jobs and threatening the country's recovery following the 2022 economic crisis. Analysts warn that competitors like Bangladesh and Vietnam could leverage the tariffs to their advantage at the expense of Sri Lanka's export market, which predominantly consists of $3 billion in apparel shipments to the US.
(With inputs from agencies.)
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