A Sri Lanka delegation that will travel to the United States next month plans to discuss with the US Trade Office how it can avoid reciprocal tariffs that will come into effect from April 2, Foreign Minister Vijitha Herath said.
He said Sri Lanka would be unable to bear such tariffs on exports when the country’s economic situation remained volatile.
Last year, the US imported from Sri Lanka goods valued at US$3 billion, with more than 70% of the products from the garment sector going to the United States, making that country one of Sri Lanka’s largest trading partners.
However, last month industry analysts said the new US tariffs on Canada, Mexico, China, and several other countries would have a beneficial impact on countries like Sri Lanka as buyers are now reviewing their global supply chains and shifting orders.
MAS Holdings’ Chief Executive Officer Suren Fernando told the Sunday Times that they were receiving inquiries from international buyers who were hoping to shift part of their orders to suppliers like Sri Lanka.
US President Donald Trump announced recently that reciprocal tariffs would take effect on April 2 and target imports from countries that levied high duties on US goods. He said he believed the tariffs would level the playing field and protect American industries.
A high-level Sri Lanka business forum will be held in the US next month with representatives of the Finance Ministry, Foreign Ministry, and delegates from the business community.
Mr. Herath said they hoped to discuss the issue of tariffs during this visit with members of the U.S. Trade Office and seek relief for the country.
He expressed hope that Sri Lanka, working within the IMF programme, would receive a tax waiver, as the country could not withstand increased tariffs.
Reciprocal tariffs refer to imposing tariffs on imported goods from a specific country in response to similar tariffs that that country has placed on goods from the imposing nation.
The idea behind reciprocal tariffs is to create a balance in trade by ensuring that both countries are subject to the same level of duties on each other’s products. These tariffs are often used to pressure a trading partner into lowering their own tariffs or to retaliate against unfair trade practices.
(sundaytimes.lk)
(Except for the headline, this story, originally published by sundaytimes.lk has not been edited by SLM staff)
