President Trump lowers U.S. tariffs on Sri Lankan goods to 20%
U.S. President Donald Trump has signed an executive order reducing import taxes on goods from Sri Lanka to 20%. This is a big drop from the 44% rate he announced in April, the White House said late Thursday.
Back in April, Trump introduced high tariffs as part of what he called “Liberation Day” to protect the U.S. economy. At that time, Sri Lankan exports were hit with a 44% tax. In July, this was reduced to 30% in a letter sent to Sri Lankan President Anura Kumara Dissanayake. Now, it has been further lowered to 20%.
The U.S. is changing its trade rules again. Countries that buy more from the U.S. than they sell to it will continue to face a 10% import tax. But countries that sell more to the U.S. than they buy like Sri Lanka will now face a 15% minimum rate. However, Sri Lanka’s new rate of 20% is lower than what was planned before.
The White House said President Trump is using tariffs to protect American jobs and fix trade imbalances. The new tariffs will start on August 7 so that U.S. customs has time to prepare.
This decision is expected to help Sri Lankan businesses that export goods like clothes and tea to the U.S., as they were worried about the earlier higher taxes.
