Sri Lanka has been placed in the lowest 10% tariff tier under a new United States trade measure targeting imports linked to forced labour — a rate its envoy in Washington described as a significant improvement on the 44% previously threatened.
The Office of the United States Trade Representative (USTR) said Ambassador Jamieson Greer, acting at the direction of President Donald Trump, had taken final action under Section 301 of the Trade Act of 1974, imposing tariffs on 60 economies over what it described as their failure to impose and effectively enforce prohibitions on the importation of goods produced with forced labour, NewsFirst reported.
Sri Lanka is among 17 economies placed in the lower 10% category, rather than the higher tiers applied to other countries. India also secured the 10% rate following discussions with Washington on labour practices.
Sri Lanka’s Ambassador to the United States, Mahinda Samarasinghe, framed the outcome as a trade victory, noting the rate is well below the 44% figure floated earlier in the year during the wider tariff dispute. The reduction eases pressure on the island’s export sector, for which the US is a leading market, particularly for apparel — the country’s single largest export category.
Officials have repeatedly stressed that maintaining favourable access to the US market is critical to sustaining Sri Lanka’s export-led recovery from its 2022 economic crisis. Exporters had warned that a 44% duty would have made key product lines uncompetitive and put manufacturing jobs at risk.
The government is expected to continue engagement with Washington on labour standards and enforcement to protect the preferential rate over the longer term.
