US apparel buyers are urging Sri Lankan manufacturers to consider sharing the additional 10 per cent tariff imposed by the United States during the current 90-day period. However, Joint Apparel Association Forum (JAAF) Deputy Chairman Felix Fernando stated that, in principle, manufacturers are unable to absorb or share the tariff. He noted that most exporters have agreed not to accommodate buyers’ requests to share this burden.
Prior to the new tariffs introduced this year, Sri Lanka’s exports to the US were already subject to duties ranging from 6 to 32 per cent.
In an effort to ease soaring tariffs imposed on various countries, the US government added a blanket 10 per cent tariff on imports from around the world for a temporary 90-day period, set to end on July 8.
As a result, an additional 10 per cent import duty is now being levied on buyers of Sri Lankan apparel as well.
Unable to absorb the increased cost, US buyers have approached Sri Lankan apparel manufacturers, seeking to negotiate a possible sharing of the tariff, JAAF Secretary General Yohan Lawrence told the Sunday Times Business on Thursday.
However, local manufacturers are facing high operating costs and are not in a position to absorb these additional expenses.
Despite challenges, Sri Lanka’s apparel exports to the US grew by 5.23 per cent year-on-year, reaching approximately US$1.9 billion in 2024. Nevertheless, this figure remains about 19.4 per cent below the pre-pandemic 2019 level of US$2.36 billion.
The United States continues to be Sri Lanka’s largest apparel export market, accounting for 40.04 per cent of total apparel exports in 2024.
