U.S. President Donald Trump signed an executive order on Thursday reducing tariffs on Sri Lankan exports to 20%, down from the 44% rate announced in April. The change was confirmed by the White House and follows a letter sent by President Trump to Sri Lankan President Anura Kumara Dissanayake on July 10.
The tariff adjustment comes under Trump’s sweeping trade initiative declared on April 2 as “Liberation Day,” when a universal 10% tariff was imposed across all countries, with higher rates for countries with trade deficits with the United States.
Sri Lanka, initially subjected to a steep 44% tariff due to its trade deficit with the U.S., saw a brief reduction to 30% before Thursday’s executive order brought the rate down further to 20%.
Key Highlights of the New Tariff Framework:
- 10% tariff for countries with a trade surplus with the U.S.
- 15% base tariff for countries with a trade deficit.
- Higher or negotiated rates for over a dozen countries with significant deficits.
In total, more than 50 countries saw revised tariffs under the new order, including:
- Bangladesh: 37% ➝ 20%
- Vietnam: 46% ➝ 20%
- Cambodia: 49% ➝ 19%
- India: 26% ➝ 25%
- Japan: 24% ➝ 15%
- European Union (most goods): 20% ➝ 15%
The revised tariff rates will be implemented on August 7, allowing U.S. Customs and Border Protection sufficient time to adjust collection mechanisms.
The White House emphasized that the tariff policy is a “powerful tool to put America First,” aimed at addressing long-standing trade imbalances that the administration argues threaten U.S. economic and national security.
