Sri Lanka Faces 44% Trump Tariff Threat

Sri Lanka is facing significant economic challenges due to new reciprocal tariffs imposed by the United States, which have reached as high as 44%, the sixth highest in the world. Key sectors, particularly apparel, are expected to be severely impacted, with analysts predicting potential job losses in the industry as 25% of Sri Lanka's exports, mainly textiles, are directed to the U.S. Companies like Hayleys Fabric PLC and Teejay Lanka PLC are already experiencing stock declines due to their heavy reliance on the U.S. market. The Sri Lankan government has yet to fully assess the impact of these tariffs, although experts warn that the higher tariff rates could lead to reduced export earnings and threaten employment. The tariffs, described by President Trump as part of a new trade policy, aim to address trade imbalances, but Sri Lankan policymakers are concerned about the broader implications for the economy. With the U.S. as Sri Lanka's largest trading partner, the uncertainty surrounding these tariffs is causing anxiety among businesses and investors.