Trump announces 44% tariffs on Sri Lanka

Donald Trump announced a sweeping new set of reciprocal tariffs on Wednesday (April 02), arguing that they would allow the United States to succeed.

Trump’s tariffs, which he imposed via executive order, are expected to send economic shockwaves around the world. The White House released a list of roughly 100 countries and the tariff rates that the US would impose in kind.

The tariffs will come into effect on different dates over the next week as follows :

• Today, 00:01 ET (05:01 BST) 25% tariff on all foreign-made automobiles
• April 5 12:01 (ET) (05:01 BST) baseline 10% tariff for all countries
• April 9 12:01 (ET) (05:01 BST) higher reciprocal rates

U.S. stock futures dropped sharply after the announcement, following weeks of volatile trading as investors speculated about how the incoming tariffs might affect the global economy, inflation and corporate earnings. U.S. stocks have erased nearly $5 trillion of value since mid-February.

In the Asian region, tariffs range from Singapore’s relatively low 10% and Philippines’ 17% to 48% on Laos and 49% on Cambodia.

34% tariffs have been imposed on China while 26% tariffs have been imposed on India.

According to the list, Sri Lanka will face 44% tariffs which will be a significant blow as 25% of Sri Lanka’s exports are sent to the US.