By: Staff Writer
July 06, Colombo (LNW): Sri Lanka’s efforts to avoid being caught in the crosshairs of U.S. trade tensions remain uncertain after former U.S. President Donald Trump revealed he had signed 12 tariff-related letters, with their contents set to be dispatched Monday. This announcement came after initial expectations that these letters would be issued on Friday, leaving countries like Sri Lanka anxiously awaiting their fate.
“I signed some letters and they’ll go out on Monday, probably twelve,” Trump told reporters on Saturday, adding that they involved “different amounts of money, different amounts of tariffs.” The ambiguity in his statement has only deepened concerns among smaller exporting nations.
Sri Lanka is currently facing a steep 44% tariff on certain exports to the U.S. under Trump’s revived trade policy, a duty that had been temporarily reduced to 10% and suspended until July 9. Colombo had pinned its hopes on securing a revision before this deadline, following weeks of behind-the-scenes lobbying efforts through diplomatic channels and trade envoys—without any direct high-level state involvement.
Cabinet spokesperson Nalinda Jayatissa confirmed last week that Sri Lanka expected to receive official communication from the U.S. ahead of the deadline. “We have an expectation from our side that we can get some amendment of the tariff to minimise the effect on the economy and our exporters as a result of interventions the government has made,” he said.
However, signs point to the revised tariffs potentially taking effect from August 1, further escalating concerns within Sri Lanka’s export sector, particularly the garment industry. The lack of clarity over Trump’s reference to “different amounts of money” has raised speculation that certain nations may have negotiated more favorable terms through increased U.S. imports or strategic concessions.
Smaller economies like Sri Lanka are particularly vulnerable to being sidelined in Trump’s transactional trade calculus. While larger countries like India—whose trade surplus with the U.S. is proportionately smaller—were hit with a relatively modest 26% tariff, others like Pakistan and Bangladesh were assigned 29% and 37% tariffs, respectively.
Sri Lanka, which relies heavily on U.S. markets for apparel exports, fears that the 44% tariff—if reinstated—could make its goods uncompetitive compared to regional rivals, shifting orders to Bangladesh or Vietnam. Trump recently claimed he had reached a deal with Vietnam’s President To Lam to lower its tariff from 46% to 20%, although details remain vague, characteristic of Trump’s often broad-stroke trade remarks.
Without high-level state-to-state engagement, Sri Lanka’s ability to secure meaningful relief appears limited. With just weeks left before potential reimposition, Colombo now faces a race against time to prevent a serious blow to its struggling export economy.
