Sri Lanka hit with 30% US tariffs

US President Donald Trump today (July 09) announced a fresh round of tariffs targeting seven countries — Sri Lanka, Algeria, Brunei, Iraq, Libya, Moldova and the Philippines.

Trump took to his social media platform, Truth Social, to share official tariff letters sent directly to the heads of state of these nations.

These tariffs will come into effect from August 01.  This move comes just a day after Trump unveiled a sweeping round of import tariffs of up to 40% on goods from 14 nations, including key trade players such as Bangladesh, Japan, and South Korea.

Accordingly, the countries with newly announced tariffs are :
1. Sri Lanka: 30%
2. Iraq: 30%
3. Algeria: 30%
4. Libya: 30%
5. Philippines: 25%
6. Brunei: 25%
7. Moldova: 25%

The 30% tariff announced for Sri Lanka is significantly less than the 44% initially announced in March. 

Negotiation talks also took place between the US and a GoSL team in Washington.

Relationship, “far from reciprocal”

The US President’s letter to his Sri Lankan counterpart – Anura Kumara Disanayake, emphasizes the United States’ commitment to fostering a fair and reciprocal trading partnership with Sri Lanka. 

Despite a longstanding trade deficit, the U.S. has agreed to continue its economic engagement with the South Asian nation, albeit under revised terms aimed at correcting what President Trump described as “unsustainable Trade Deficits.”
“Our relationship has been, unfortunately, far from reciprocal,” the letter states.

The letter also warns that any increase in Sri Lankan tariffs on U.S. goods would result in a proportional increase in the U.S. tariff rate beyond the initial 30%.

The letter also extended an invitation to Sri Lankan companies to invest directly in the United States, noting that products manufactured domestically would be exempt from the new tariffs. He assured expedited approvals for such ventures, promising a streamlined process “in a matter of weeks.”

(Agencies)

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