As U.S. President Donald Trump ditches complex trade negotiations in favor of sweeping tariff letters to 170 countries, Sri Lanka braces for a potential 44% import tax reinstatement. With a six-day grace period ticking away, Colombo’s hopes hinge on urgent negotiations as regional competitors strike better deals.
U.S. President Donald Trump has announced a major shift in trade strategy, saying he prefers issuing direct letters imposing import tariffs of 20% to 30% on countries instead of engaging in complex product-by-product trade deals.
Sri Lanka, currently facing a suspended 44% import tariff, is anxiously awaiting one such letter that could shape the future of its export economy.
“My intention is to send a letter stating what tariffs they have to pay. That would be easier,” Trump told reporters. “We have over 170 countries. How many deals can you do? You can do good deals, but they are very complicated.”
“It’s a bunch of countries. Then they talk about specific things. Let’s do this, let’s do that. Beef, ethanol… I want a simple deal, one that you can manage and control. You’re going to pay a 20%, 25% or 30% tariff.”
Trump said around 10 countries will receive these letters per day starting Friday evening Sri Lanka time. The intention is to clarify what each nation owes for trading access to the United States.
Currently, Sri Lanka pays a minimum 10% tariff as a country with a trade surplus. But the 44% rate imposed during Trump’s earlier administration has only been suspended until July 9. Without an agreement in place, the higher rate may return.
Sri Lanka is yet to receive a definitive figure. Government officials are negotiating intensely to ensure the country receives a tariff that’s not disadvantageous when compared to regional competitors like India, Bangladesh, Vietnam, and other East Asian nations.
Cabinet Spokesperson Nalinda Jayatissa commented Wednesday: “As a result of the government’s interventions, we are hopeful that we will get some revision in the tariff to mitigate the impact on the economy and our exporters.”
In contrast, Vietnam, which has offered duty-free access to U.S. products and expressed interest in purchasing U.S. nuclear reactors and jets, has been assigned a 20% rate, according to reports on social media. China has reportedly received a 35% rate, with potential to increase to 55% depending on specific product categories.
With the grace period ending and no confirmed deal in place, the Sri Lankan government is under mounting pressure to finalize terms before local industries, especially garments, tea, and rubber suffer a major blow to competitiveness in the U.S. market.
