Sri Lanka Apparel Orders Drop 10% Amid US Tariff Uncertainty

Sri Lanka's apparel sector is experiencing approximately a 10 percent reduction in US orders due to ongoing tariff negotiations and an uncertain US economic outlook, with many US consumers delaying or reducing spending. Sri Lankan manufacturers face a 10 percent base tariff increase as the 90-day grace period before further tariff hikes expires on July 8, although negotiations continue to potentially mitigate the impact. Meanwhile, US Commerce Secretary Howard Lutnick asserts that the current 10 percent tariffs do not raise consumer prices, arguing that foreign exporters absorb most of the cost. Lutnick remains optimistic about upcoming trade deals with major US trading partners by mid-summer despite the tariff-related uncertainty faced by businesses and consumers. However, some US retailers, including Walmart, have announced plans to raise prices in response to tariffs, contradicting Lutnick's claims and prompting criticism from former President Trump. The differing perspectives highlight ongoing tensions regarding the tariffs' economic effects, with US consumers likely to experience price increases in the near term.