US President Donald J. Trump has notified President Anura Kumara Dissanayake that the United States will impose a 30% tariff on all Sri Lankan goods entering the American market, effective August 1, 2025.
The announcement, conveyed via an official letter from the White House, marks a reduction from an earlier proposal of a 44% tariff, but nonetheless represents a stark policy turn likely to impact Sri Lanka’s key export sectors, including garments, tea, and rubber.
“We have had years to discuss our trading relationship with Sri Lanka and have concluded that we must move away from these very persistent trade deficits, engendered by Sri Lanka’s tariff and non-tariff policies and trade barriers,” President Trump said.
He called the economic relationship between the two nations as being “far from reciprocal,” attributing the decision to structural imbalances in the trade framework that have disadvantaged the United States over an extended period.
“Starting from August 1, 2025, we will charge Sri Lanka a tariff of only 30 percent on any and all Sri Lankan products sent to the United States, separate from all sectoral tariffs,” the letter noted, suggesting that additional duties on specific product categories may also be in place alongside the blanket rate.
Meanwhile, analysts in Colombo warn that the revised tariff, while lower than initially feared, still poses significant risks for local exporters who have long relied on preferential access to the lucrative U.S. market.
The United States and Sri Lanka maintain a significant trade relationship, with total bilateral trade reaching approximately $3.4 billion in 2024.
The U.S. imported about $3.0 billion worth of goods from Sri Lanka, while exporting $368.2 million to the island nation, resulting in a trade deficit of $2.6 billion in favor of Sri Lanka.
Sri Lanka’s exports to the U.S. are predominantly in the apparel sector, accounting for over 70% of its exports to the U.S. in 2024.
Other significant exports include tea, rubber, and fish.
The U.S. is Sri Lanka’s largest export market, comprising 23% of the country’s total merchandise exports in 2024.
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