Sri Lanka awaits favourable US response on reciprocal tariffs by 8 July

Thursday, 3 July 2025 06:04 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa says believes US will adjust tariff policies without harming exporters or broader economy
Asserts Sri Lanka proactively engaged through multiple Zoom discussions with USTR officials
Notes joint statement depends on further US decisions
US remains key export market, importing $ 3 b in goods last year, mostly garments

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday expressed confidence that Sri Lanka could expect a favourable response from the US on the looming reciprocal tariffs by 8 July, easing concerns of a severe blow to local exporters.

Speaking at the weekly post-Cabinet meeting media briefing, he acknowledged that the sweeping tariff measures announced by US President Donald Trump on 2 April 2025 sent shockwaves throughout the global market.

“We hope that by 8 July, the US will be able to adjust its tariff policies in a way that does not harm our exporters or severely impact our economy,” he added.

The measures include a baseline 10% tax on all imports, with significantly higher rates on countries with which the US maintains trade deficits. Sri Lanka, in particular, faces one of the steepest rates at 44%.

Dr. Jayatissa noted that Sri Lankan authorities had proactively engaged with their US counterparts to protect local industries, including several rounds of discussions via Zoom video calls with the United States Trade Representative (USTR) in Washington.

“Our delegations spoke in two rounds, and we are hopeful of receiving some form of favourable outcome through our proactive engagement and efforts before 9 July,” he stressed.

When asked if there would be any joint statement regarding this, Dr. Jayatissa said it would depend on the US Government and the USTR, and the next steps will be based on those.

The US remains a key trading partner for Sri Lanka, having imported $ 3 billion worth of goods from the island nation last year. Over 70% of these exports came from the garment sector, making the US market critical for Sri Lanka’s economy.

As part of these efforts, a Sri Lankan delegation on the direction of President Anura Kumara Disanayake, in his capacity as the Finance Minister, met US Trade Representative Ambassador Jamieson Greer in Washington DC on 22 April (https://www.ft.lk/front-page/Sri-Lanka-and-US-hold-high-level-talks-in-Washington-over-reciprocal-tariffs/44-775876).

The delegation presented formal communications from the Government, outlining challenges the country has faced and highlighting reforms underway to achieve sustainable economic recovery (https://www.ft.lk/front-page/SL-adopts-measured-stance-in-trade-talks-with-US/44-776052).

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.