Being prompt to respond to Trump

Several discussions at different levels have erupted in Sri Lanka to propose and discuss the options available. Some options proposed are retaliatory moves similar to China's response. China is the second-largest economy in the world and a strong player in international trade. China can afford to retaliate against Trump's reciprocal tariffs.

- By Chandrasena Maliyadde

For Sri Lanka, the US is a major export market accounting for nearly 30% of its total exports. But, for the US, Sri Lankan exports represent only 3% of its total imports. Thus, the retaliation option is way off for Sri Lanka.

Another option proposed is negotiations with the US. It was announced that a high-powered team would visit the US to negotiate. Whether the team is high-powered or not, it must consist of members equipped with strategic thinking, diplomatic maturity, and negotiation skills. It is essential that the team do their homework and is well prepared before the departure to avoid a similar rebuke meted out to Zelenzky at the White House. It is true that the US move has hurt plantation workers, rural farmers, smallholders, garment factory workers, and would widen the trade deficit, put pressure on Sri Lanka's balance of payments. Exports are crucial for Sri Lanka which is recovering from bankruptcy and debt restructuring. I pray that the high-powered team would not refer to these factors during the negotiations. The team has to be careful to avoid Trump shouting 'for being disrespectful and raising your own domestic issues that should be sorted out by your Government'. These concerns are our own and no reason for Trump to be getting worried.

Diversification of markets is another option suggested. If this option were available, why did Sri Lanka depend on the US market for 30% of its exports? Trump's reciprocal tariff would affect all countries in different proportions. It is not realistic to assume that the rest of the world needs to worry and show some mercy towards Sri Lanka for getting, their woes. They are busy putting their houses to respond to Trump's tariff blow. Trump has put countries against each other, and each one is looking for survival. It is doubtful we have much scope for diversification of markets.