US Slashes Tariff on Sri Lankan Exports to 20%
The US has implemented a 20% tariff on Sri Lankan exports, a significant reduction from earlier proposals. Sri Lankan officials are negotiating further cuts as the deadline looms. The change follows adjustments from initial high tariffs imposed by the US earlier this year, crucial for maintaining competitiveness.
- Country:
- Sri Lanka
The United States has imposed a 20 percent tariff on Sri Lankan exports, marking a substantial decrease from the initial proposal. This tariff adjustment comes just before the tariff negotiation deadline, set to end on Friday.
Sri Lankan officials are engaged in ongoing discussions, aiming to reduce the tariffs even further. The newly established tariffs will come into effect on August 7, impacting the country's export economy.
Earlier this year, US President Donald Trump enforced a 44 percent tariff on Sri Lankan goods, which was later decreased to 30 percent. With annual exports worth around USD 3 billion to the US, Sri Lanka seeks competitive tariff rates below 20 percent to challenge regional competitors like Vietnam and Bangladesh.
(With inputs from agencies.)
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