The Joint Apparel Association Forum Sri Lanka (JAAF) has warned that the 30% reciprocal tariff recently imposed by the United States on Sri Lankan garment exports threatens to divert American buyers to competing countries with lower tariff rates.
In a statement, JAAF urged the Sri Lankan government to actively engage with US trade representatives to negotiate a further reduction in the tariff. Given that garment exports are the country’s largest source of export revenue, with a significant portion destined for the US market, the forum cautioned that the high tariff could erode Sri Lanka’s competitiveness in the region.
The statement noted that Vietnam benefits from a lower reciprocal tariff of 20%, while Bangladesh is currently in talks to reduce its 35% tariff. Cambodia, which faces an even higher tariff than Sri Lanka, is also seeking tariff relief. “Considering these facts, Sri Lanka must intensify efforts to negotiate a further reduction in the US tariff,” JAAF emphasized.
While acknowledging the government’s success in lowering the tariff from 44% to 30%, the Joint Apparel Association Forum Sri Lanka strongly urged the government to make every effort to reduce the tariff further before the August 1 deadline.
The forum highlighted that diplomatic efforts will be crucial to securing the jobs of hundreds of thousands of workers dependent on the garment industry, protecting Sri Lanka’s market share, and maintaining the country’s reputation as a reliable supplier in the global garment supply chain.
