The United States has informed Sri Lanka that while some relief may be granted from the steep 54% tariff currently levied on Sri Lankan exports, apparel manufactured in Sri Lanka using fabrics imported from countries like China will still be subjected to higher import duties.
According to reports emerging from ongoing trade discussions, American officials have made it clear that garments sewn in Sri Lanka but made with fabric sourced from other nations would not qualify for the same level of tariff relief under U.S. trade regulations.
The development comes amid continued negotiations between the two countries concerning the U.S. tariff structure, which has been a significant concern for Sri Lankan exporters, particularly those in the apparel sector.
Earlier, a U.S. commercial court issued a decision to suspend the 54% tariff imposed under presidential directive. However, that suspension was promptly overturned by the U.S. Court of Appeals, which reinstated the tariffs and ensured their continued enforcement.
The message from the U.S. side underscores the importance of local value addition in qualifying for trade benefits and reflects ongoing American scrutiny of supply chains, especially those involving Chinese-origin goods.
As Sri Lanka seeks to strengthen its export competitiveness in key markets, the apparel industry one of its largest sources of foreign income continues to navigate growing complexities in global trade dynamics.
