Sri Lanka has been hit with a 20% tariff under a sweeping set of revised trade rates issued by U.S. President Donald Trump through an executive order. The new tariff aligns Sri Lanka with countries like Bangladesh, Vietnam, and Pakistan, which also received a 20% or 19% rate.
Malaysia, Indonesia, and Thailand were similarly assigned a 19% tariff, while India received a notably higher rate of 25%.
Cambodia, which has seen a dramatic export surge following its 1990s dollarization and subsequent macroeconomic stabilization, was assigned a 19% tariff. In 2024, Cambodia’s exports reached $33 billion — a stark contrast to its near-zero export base before dollarization, when instability and failed monetary policies discouraged foreign investment and undermined domestic capital.
Several African nations and small island states, including Afghanistan, were given a 15% tariff.
The executive order justifies the changes by stating:
“Some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States… Others have either failed to sufficiently address trade imbalances or have not aligned closely enough with the United States on economic and national-security matters.”
Countries not engaging in negotiations or making adequate policy alignments were subject to higher tariffs.
Sri Lanka’s negotiating efforts were led by Treasury Secretary Harshana Suriyapperuma, with President Anura Kumara Dissanayake also participating in online discussions with the U.S. Trade Representative’s office.
Meanwhile, Brazil — despite its trade surplus with the U.S. — secured a 10% tariff following sustained diplomatic pressure.
Highlights from the Adjusted Tariff List:
- Sri Lanka: 20%
- India: 25%
- Vietnam, Bangladesh, Pakistan: 20%
- Cambodia, Indonesia, Malaysia, Thailand: 19%
- Afghanistan, South Africa, Ghana: 15%
- Brazil: 10%
- Laos, Myanmar: 40%
- Syria: 41%
- United Kingdom, Falkland Islands: 10%
The complete list of tariff adjustments was released alongside the executive order, titled “Further Modifying the Reciprocal Tariff Rates.”
