Tariff Shock: Trump Targets Sri Lanka and 6 Others with Tariffs Up to 30%

Effective August 1, 2025, the United States will enforce new import tariffs on 7 countries, including Sri Lanka. President Trump’s administration has introduced duties ranging from 20% to 30% as part of a broader strategy aimed at renegotiating global trade agreements and protecting domestic industries.

New Tariff Structure on Imports: Countries and Rates

The Biden-era policies on trade saw a gradual de-escalation of tariffs, but President Trump, since reassuming office in January 2025, has reversed course. The new directive imposes a 30% tariff on imports from Sri Lanka, Algeria, Iraq, and Libya. Brunei and Moldova will see 25% duties, while the Philippines will face a 20% tariff. These levies will come into force from August 1 and will apply regardless of previous sector-specific duties already in place.

Purpose Behind Tariff Implementation

The stated objective behind these steep tariffs is to assert stronger negotiating terms in ongoing trade deals. According to Trump's July 7 announcement, the duties are a delayed implementation of decisions made earlier in the year, aimed at balancing American trade deficits and safeguarding local manufacturing against cheaper imports.

Implications for Sri Lanka and Other Economies

Sri Lanka, already facing foreign exchange and fiscal challenges, may feel the direct impact of the 30% tariff through reduced export competitiveness in the US market. Similarly, trade flow disruptions are expected for other listed nations, particularly those heavily reliant on US-bound exports, such as textiles, machinery, and agricultural products.

Read More: Trump Announces Tariff Letters to 12 Nations: Trade Talks with India in Progress!

Broader Global Economic Concerns and Market Reaction

The announcement has caused uncertainty across financial markets and added strain to international trade relations. While India hasn’t yet been targeted under the current wave, notices have reportedly been sent to 14 other nations, including Japan and South Korea, indicating further potential tariff escalations.

Conclusion

The 30% tariff on nations including Sri Lanka marks a significant step in the US’s return to aggressive trade negotiations under President Trump. As these new duties take effect, affected countries may reassess their export strategies and trade ties with the US.

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