SL's apparel sector seen as placed in jeopardy by US' 30% reciprocal tariff

The announcement of a 30% reciprocal tariff by the U.S., scheduled to take effect from 1st August 2025, has raised significant concern within Sri Lanka's apparel industry. As one of the country’s largest export earners, the sector relies heavily on access to the U.S. market, and such a steep increase threatens to erode competitiveness, particularly when compared to regional peers.

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JAAF notes that Vietnam has already concluded its negotiations and now faces a 20% tariff, while Bangladesh, though at 35%, has already begun negotiations with the U.S. to secure a reduction. India's position remains under discussion, but early signals suggest it may receive a more favorable rate than Sri Lanka. In all likelihood Cambodia, another competitor with a tariff