Fate of Sri Lankan exports amidst unpredictability of Trump tariffs

WITH just one week away from the reciprocal US import tariffs coming into effect, the state of the negotiations between Colombo and Washington for a trade deal is causing a great deal of anxiety and concern.

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The exporter associations have called upon the administration to negotiate with the US authorities to further reduce the revised 30% tariff rate applicable on Sri Lankan exports to America as Sri Lanka’s main competitors within the US market - ex: India, Vietnam, and Indonesia — have either secured or likely to secure tariff rates less than 30% for their exports to the world’s largest economy.

Although the Government earlier announced a high-level delegation would depart for Washington to engage with the US authorities, the engagement got downgraded to virtual discussions between the two sides.

Last week, Labour Minister Prof. Anil Jayantha claimed that the Trump administration was willing to offer duty-free access to around 1,161 product lines from the island, including apparel and 42 agricultural items. Should it materialise, it would no doubt be a huge impetus to the country’s exports as well as the ongoing economic recovery. However, Jayantha had made blatantly false remarks over the nature of the deliberations between the two countries; hence, his statements would be viewed with mistrust by the observers.