Sri Lankan exporters are worried about a new proposal from the United States to increase taxes (tariffs) on imported goods to 30%. They say this could badly affect important industries like apparel (clothing) and rubber products, which bring in a lot of money for the country.
The Exporters Association of Sri Lanka (EASL) has asked the government to talk to US officials quickly before the August 1 deadline. While the association appreciated the efforts made so far, they believe the government needs to act faster and more seriously to protect Sri Lanka’s trade.
EASL also pointed out that other countries like Vietnam and India will face lower tariffs—20% and 26%, respectively. If Sri Lanka is taxed more than these countries, its goods will become less competitive in the US market.
Read more:Â India Refuses Tariff Cuts on Dairy and Wine Products, Stalling Trade Talks with Australia
To reduce the damage, the association suggested that Sri Lanka should also start looking for new international markets. This way, the country won’t rely too much on just a few buyers and can stay strong even if trade rules change in the future.
Also Read: Trump’s 50% US Tariffs Hit Copper and Brazil Starting August; Will India Feel the Heat?
