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COLOMBO (News 1st); US President Donald J. Trump has formally announced a 30% tariff on all Sri Lankan products entering the United States, effective August 1, 2025. The decision was outlined in an official letter addressed to Sri Lankan President Anura Kumara Dissanayake. Earlier, Trump proposed a 44% tariff on Sri Lanka, and it was seen as a corrective measure against what the U.S. described as “persistent and unsustainable trade deficits.”
The letter, issued from the White House, emphasizes the United States' commitment to fostering a fair and reciprocal trading partnership with Sri Lanka. Despite a longstanding trade deficit, the U.S. has agreed to continue its economic engagement with the South Asian nation, albeit under revised terms aimed at correcting what President Trump described as “unsustainable Trade Deficits.”
“Our relationship has been, unfortunately, far from reciprocal,” the letter states, citing Sri Lanka’s tariff and non-tariff policies as contributing factors to the imbalance. The newly imposed 30% tariff is intended to address these disparities, with additional sectoral tariffs applicable to specific goods. Furthermore, any attempt to transship goods to evade higher tariffs will be met with enforcement measures.
President Trump also extended an invitation to Sri Lankan companies to invest directly in the United States, noting that products manufactured domestically would be exempt from the new tariffs. He assured expedited approvals for such ventures, promising a streamlined process “in a matter of weeks.”
The letter includes a warning that any increase in Sri Lankan tariffs on U.S. goods would result in a proportional increase in the U.S. tariff rate beyond the initial 30%.
“This Deficit is a major threat to our Economy and, indeed, our National Security,” President Trump asserted, underscoring the strategic importance of balanced trade.