U.S. President Donald Trump has signed an executive order reducing import taxes on goods from Sri Lanka to 20%, a significant drop from the steep 44% rate imposed in April, the White House announced on Thursday.
The initial tariff hike was part of Trump’s “Liberation Day” policy aimed at safeguarding the U.S. economy by imposing heavy duties on foreign imports. Sri Lanka was among the countries most affected, with exports facing a 44% tariff. That rate was lowered to 30% in July following a formal communication to Sri Lankan President Anura Kumara Dissanayake — and has now been further reduced to 20%.
This tariff adjustment comes amid broader revisions to U.S. trade policy. Countries with trade surpluses with the U.S., like Sri Lanka, will now generally face a minimum 15% import tax. In contrast, nations that purchase more from the U.S. than they export to it will continue to face a 10% rate.
Despite this baseline, Sri Lanka’s 20% rate is still more favourable than the earlier 44% and even the expected 30%, signalling a potential softening in Washington’s stance.
According to the White House, the new tariffs are part of Trump’s ongoing effort to address trade imbalances and protect American jobs. The revised rates will take effect from 7 August, giving U.S. customs authorities time to implement the changes.