Sri Lanka gets largest US tariff cut, says Deputy Foreign Minister

US President Donald Trump has decided to impose a 30% reciprocal tariff on all goods imported from Sri Lanka. The White House has issued an official letter informing President Anura Kumara Dissanayake of this decision.

On April 2, the US President had initially imposed a 44% reciprocal tariff on Sri Lankan imports, granting a grace period for its implementation. That grace period ended on July 9, and the new 30% tariff will take effect from August 1, 2025.

In the letter, the US President further stated that if Sri Lanka increases its tariffs, the United States will impose an equivalent additional percentage on top of the existing 30%. The letter reads, “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge. Please understand that these Tariffs are necessary to correct the many years of Sri Lanka’s Tariff, and Non-Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits against the United States.”

Meanwhile, the Ministry of Foreign Affairs, Foreign Employment & Tourism stated that the reduction of the tariff on Sri Lankan exports to the US from 44% to 30% is a positive approach. 

Deputy Minister of Foreign Affairs & Foreign Employment, Arun Hemachandra, highlighted that Sri Lanka received the largest tariff reduction among all countries listed. He attributed this to strong bilateral relations and diplomatic engagement between the two nations.

In addition to Sri Lanka, the US President imposed new tariffs on six other countries yesterday. Accordingly, a 30% tariff was also imposed on Algeria, Iraq, and Libya.

The US has imposed 25% tariffs on Brunei and Moldova, and a 20% tariff on the Philippines.

In addition, last Monday, the US President announced new tariffs on 14 countries.

Meanwhile, the US President has also announced his intention to impose a 50% tariff on Brazil.