ECONOMYNEXT – US President Donald Trump has issued a letter to Sri Lanka President Anura Kumara Dissanayake, setting a 30 percent tariff, down from an original 44 percent .
“We have had years to discuss our trading relationship with Sri Lanka, and have concluded that we must move away from these very persistent, Trade Deficits, engendered by Sri Lanka’s Tariff and Non Tariff, Policies and Trade Barriers,” Trump said.
“Our relationship has been, unfortunately, far from reciprocal.
“Starting from August 01, 2025, we will charge Sri Lanka a tariff of only 30 percent on any and all Sri Lankan products sent to the United States, separate from all Sectoral Tariffs.”
The letter to Sri Lanka came along with several to other countries, including US ally Philippines, who was charged 20 percent, up from 17 percent in April, which is one of the lowest seen this week.
Sri Lanka’s 30 percent is one of the steepest falls seen from the original 44 percent, and is lower than 32 percent for Indonesia and 36 percent for Thailand, a long-time US ally and a competitor for Sri Lanka’s rubber exports.
Malaysia, also a competitor for rubber, was charged 25 percent, up one percent. Laos is at 40 percent. Companies like Vietnam Rubber Group JSC has been heavily investing in plantations in Laos.
Bangladesh, a competitor for apparel, has set a 35 percent tariff. India and Pakistan tariff is awaited. Trump has got closer to Pakistan of late.
Philippines, a competitor for Sri Lanka’s coconut and activated carbon exports was charged 20 percent, indicating a gap of 10 percent.
Vietnam is expected to get 20 percent, after the country negotiated and slashed import duties for US goods, Trump has said, despite having a very large trade gap with the US.
Sri Lanka negotiated to reduce the gap between existing competitors.
However based on tariff differentials, especially if there are more countries with 10 percent rates, new competitors may emerge.
The letter came with several others issued on the same day including a 50 percent rate to Brazil, ostensibly because former President Bolsanaro was being tried by courts, which he claimed was “unlawful” and a “witchhunt”. The rate was up from 10 percent in April.
The tariff rates so far are as follows:
Laos 40 percent from Laos down from 48 percent.
Myanmar 40 percent down from 44 percent.
Cambodia 36 percent down from 49 percent.
Thailand 36 percent, no change.
Serbia 35 percent, down from 37 percent.
Indonesia 32 percent, no change.
Libya was charged 30 percent, down from 31 percent.
Iraq was charged 30 percent, down from 39 percent.
Algeria was charged 30 percent, no change.
Bosnia-Herzegovina 30 percent, down 35 percent.
South Africa 30 percent, no change.
Brunei was charged 25 percent up from 24 percent.
Japan 25 percent, up from 24 percent.
Kazachstan 25 percent, down 2 percent.
Malaysia 25 percent up 1 percent.
Maldova, a small European state, was charged 25 percent, down from 31 percent.
South Korea 25 percent, no change.
Tunisia 25 percent, down from 28 percent
The Philippines was charged 20 percent, up from 17 percent.
(Colombo/July09/2025)
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