Sri Lanka’s Joint Garment Associations Forum urges urgent talks with the US to reduce the 30% reciprocal tariff, warning of a major threat to garment exports, job losses, and global competitiveness if rates aren’t cut before August 1.
The Joint Garment Associations Forum (JGAF) has sounded the alarm, stating that Sri Lanka’s garment export industry could suffer a severe blow unless the 30% reciprocal tariff imposed by the United States is further reduced. The Forum warns that American buyers may soon turn to competing countries enjoying more favorable tariff concessions.
In a formal statement, the JGAF urged the government to intensify its diplomatic engagement with US trade representatives to secure a deeper cut to the recently announced tariff. The Forum emphasized the critical role garment exports play in Sri Lanka’s economy, being the country’s largest export earner and heavily reliant on the US market.
The imposition of a 30% tariff, the statement added, significantly undermines Sri Lanka’s regional competitiveness, especially against countries like Vietnam, which has secured a 20% rate, and Bangladesh, which is already in talks to bring down its 35% tariff. Cambodia, despite currently facing a higher rate than Sri Lanka, is actively lobbying for reductions as well.
The JGAF acknowledged the government’s diplomatic success in negotiating the tariff down from the initially proposed 44% to 30%. However, it strongly stressed the need for a continued push to further reduce the rate before August 1. The Forum warned that without swift and effective negotiations, Sri Lanka risks losing market share, diminishing investor confidence, and triggering widespread job losses in an industry that supports hundreds of thousands.
The statement concluded by reminding policymakers that Sri Lanka’s reputation as a reliable garment manufacturer in the global supply chain hangs in the balance. Proactive diplomacy is now essential to safeguarding jobs, foreign exchange earnings, and the nation’s economic stability.
