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Home Business & Finance Economic Policies

Public support will move towards China after Trump tariff, says Sri Lanka’s ex-leader todayheadline

April 11, 2025
in Economic Policies
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ECONOMYNEXT – A Sri Lankan think tank has called for a global response on U.S. President Donald Trump’s reciprocal tariff instead of individually campaigning against the move.

Verité Research Sri Lanka, a Colombo-based think tank urged the Sri Lankan government and all others to forge a multilateral ‘Cooperative Common Response’ to the US tariff hike, to prevent further rupture to the rules-based order on trade in the world.

“The trade deficit related tariff hike by the United States creates a severe break from the rules-based global order on trade established through the World Trade Organisation (WTO), with the membership of 166 countries covering 98% of trade,” it said in a statement.

“A rules-based order, as it exists at present, even with its many weaknesses, fosters stability, and makes all countries better-off than the alternative of a free-for-all.”

Trump, targeting China, increased the tariff on Chinese goods to 145 percent on Thursday after increasing it to 104 percent earlier.

In retaliation, China also has increased the tariff for U.S. products to 125 percent from an earlier 84%.

Trump has announced a 90-day pause on the reciprocal tariff imposed on other countries. Sri Lanka will also be a beneficiary of the policy change.

But Sri Lanka will still be subject to 10-percent standard tariff of its exports to the U.S. and will be subject to 44 percent tariff after 90 days unless its negotiation for a zero or lower tariff succeeds.

“As countries line up to negotiate bilaterally with the United States on exceptional arrangements, to mitigate the individual country impact of the unilateral action, Verité Research.. is calling its government and the world to forge a multilateral approach instead.”

“That is, for as many countries as possible to come together under the aegis of the WTO and forge a ‘Cooperative Common Response’, instead of defecting to act bilaterally and exacerbate the rupture to the existing rules-based order on trade in the world.” (Colombo/April 11/2025)


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