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Thursday, July 10, 2025
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Sri Lankan Exports Face Fresh 30% U.S. Tariff as Trump Revives Trade Offensive – Full letter

Sri Lankan Exports Face Fresh 30% U.S. Tariff as Trump Revives Trade Offensive – Full letter

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Sri Lanka is among seven countries hit with steep new U.S. tariffs under a fresh round of trade measures announced by President Donald Trump, signalling a significant escalation in his hardline economic agenda.

Trump took to his social media platform, Truth Social, to share official letters addressed to the heads of state of the targeted nations. The letters formally notify governments, including Sri Lanka’s, of a 30 percent import tariff on goods entering the United States starting 1 August.

Iraq, Algeria, and Libya are also subject to the same 30 percent tariff rate. The Philippines, Brunei, and Moldova will face slightly lower tariffs of 25 percent.

This latest announcement follows Trump’s earlier move just a day prior, in which he unveiled import duties of up to 40 percent on goods from 14 countries, including major trade partners such as Japan, South Korea, Bangladesh, and Indonesia. The 14-nation list also included Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Bosnia and Herzegovina, Tunisia, Serbia, Cambodia, and Thailand. Tariff rates in that round ranged from 20 to 40 percent, with the letters warning that the U.S. may “perhaps” revise the levels depending on future bilateral relations.

In his message on Truth Social, Trump hinted at more to come: “We will be releasing a minimum of 7 countries having to do with trade, tomorrow morning, with an additional number of countries being released in the afternoon. Thank you for your attention to this matter!”

Sri Lanka now finds itself caught in the middle of a rapidly expanding trade war, with no clear indication yet of how or whether the government plans to respond or engage in negotiations with Washington.

The 30 percent tariff on Sri Lankan goods comes as Trump ends his previously declared 90-day tariff pause. That suspension—put in place in April after his “Liberation Day” tariff declaration—was intended to allow space for dialogue amid global market volatility. Only limited success was seen during the period, with the U.S. managing to finalise trade agreements with the United Kingdom and Vietnam, and striking a temporary deal with China to lower some duties.

Adding further tension, Trump has also announced a 10 percent tariff on imports from BRICS nations—Brazil, Russia, India, China, and South Africa—citing persistent trade imbalances.

The executive order signed by Trump on Monday delays the tariff deadline to 1 August, giving affected countries only a few weeks to respond or negotiate.

The move has already caused ripples in global markets and raised alarm among trade-dependent economies. For Sri Lanka, which has been attempting to expand its export reach amid a difficult post-crisis recovery, the 30 percent tariff is likely to pose new challenges for exporters hoping to access the U.S. market.

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