USA Tariff slap Significant risk to SL economy

The imposition of a 44% tariff on Sri Lankan goods by the U.S. poses significant risks to Sri Lanka's economy, particularly its apparel industry Sri Lanka is heavily reliant on exports to the U.S., with approximately 23% of its total exports destined for the American market More diversified portfolio of tea, precious stones, fish and seafood are less affected due to their smaller share in total exports to the U.S.

- By DR.KENNETH DE ZILVA

It is safe to say that President Donald Trump has been influenced by Hamilton's ideas, particularly in his dealings with all its trading partners (including developing countries), where he has sought to reduce the U.S. trade deficit through tariffs and other trade restrictions By diversifying its export markets and adapting to changing trade and Asian consumer dynamics, Sri Lanka can mitigate risks and explore new avenues for economic development.

The United States yesterday announced and introduced a significant shift in its trade policy by imposing tariffs on imports, marking a departure from the globalization and comparative advantage doctrine that has dominated international trade for decades.

This move aims to revert to a more national (i.e. MAGA, or Make America Great Again) and protectionist model, reminiscent of Alexander Hamilton's economic strategy, which emphasizes domestic manufacturing and economic self-sufficiency. It is safe to say that President Donald Trump has been influenced by Hamilton's ideas, particularly in his dealings with all its trading partners (including developing countries), where he has sought to reduce the U.S. trade deficit through tariffs and other trade restrictions.