The Government began discussions on US tariff reduction after US President Donald Trump slapped a 30% tariff at the completion of the 90-day pause which ended on July 9.
The team comprised Central Bank Governor Dr. Nandalal Weerasinghe, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development Vimalendra Raja, Senior Presidential Advisor Duminda Hulangamuwa, and Sri Lanka’s Ambassador to the United States Mahinda Samarasinghe.
The US imposed a reciprocal tariff of 44% on Sri Lankan exports in April sending a chil down the spine of exporters particularly apparel and rubber which account for the largest share in the export basket to the US.
The Government attributed the reduction of the initial tariff of 44% to 30% as an outcome of the talks held with US trade officials.
Exports to the US amounted to around US$ 3.0 billion in 2024 which was a 6.1% growth of the previous year.
Meanwhile Economic Development Deputy Minister Prof. Anil Jayantha Fernando said last week that the US had offered a list of 1,161 product lines, comprising apparel and 42 agricultural items that could receive duty-free access to the US market under the new proposal.
He said the US has proposed permitting around 80 percent of Sri Lankan exports to enter the US market duty-free.
However, exporters want to see a substantial reduction in tariffs to be competitive in global trade.
