Sri Lanka held two rounds of talks to negotiate the new tariff, which the analysts said would endanger 50,000 jobs in the export sector.
The letter addressed to President Anura Kumara Dissanayake stated the new 30 per cent tariff would come into force from August 1.
“Starting from August 1, 2025, we will charge Sri Lanka a tariff of only 30 per cent on any and all Sri Lankan products sent to the United States, separate from all sectoral tariffs,” said the letter.
Meanwhile, economist Talal Rafi said that 30 per cent would be a hard hit to the local economy and added that Sri Lanka should have agreed to reduce the tariffs on US exports.
“Vietnam has got away with only 20 per cent because they agreed to eliminate duties on American goods,” Rafi said.
According to analysts, Sri Lanka’s 30 per cent tariff, a drop from the 44 per cent proposed in April, was the sharpest reduction among the countries targeted by the Trump administration.
In the US policy of correcting its trade imbalances globally, announced in April, the tariff was fixed at 44 per cent for Sri Lanka, half of the 88 per cent Colombo charges Washington for imports to the island nation.
Indonesia and Thailand’s tariffs remained unchanged at 32 and 36 per cent. Both countries are Sri Lanka’s competitors for rubber exports to the US.
Sri Lanka’s annual exports to the US were valued at USD 3 billion. PTI CORR GRS GRS GRS