U.S. President Donald Trump has issued a new executive order reducing tariffs on goods imported from Sri Lanka to 20%, down from the 44% rate previously announced in April, according to a statement released by the White House on Thursday.
Initially, a 44% tariff was proposed on Sri Lankan exports following Trump’s April 2 declaration of an “economic emergency,” which imposed a minimum 10% tariff on imports from all countries. That declaration, referred to as “Liberation Day” by the President, introduced significantly higher tariffs for nations or trading blocs running substantial trade surpluses with the United States.
By July 10, however, the tariff rate on Sri Lankan goods had already been reduced to 30%, as confirmed in an official communication to Sri Lankan President Anura Kumara Dissanayake. Now, just hours before a crucial August 1 trade deadline, the White House has further adjusted the figure to 20%.
The updated tariff structure, unveiled late Thursday, outlines that the standard 10% tariff originally applied universally will remain in place, but only for nations that run a trade surplus with the U.S. For countries with a trade deficit against the U.S., a new minimum tariff rate of 15% will be enforced.
Roughly 40 countries fall under this 15% category, while more than a dozen others will see even higher rates. These higher tariffs apply to countries that either entered into specific trade agreements with the U.S. or received direct presidential notifications due to significant trade imbalances.
“The President views tariffs as a vital instrument to restore economic fairness and protect national interests, particularly in the face of long-standing trade deficits,” said the White House in its official release.
Although the revised tariffs were expected to take effect immediately, implementation has been postponed until August 7 to allow U.S. Customs and Border Protection time to update their systems.
These final adjustments mark a more calibrated phase in Trump’s broader trade strategy, aiming to rebalance global trade relationships while accommodating certain partners such as Sri Lanka.
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