The high tariff rates announced by US President Donald Trump under the reciprocal tariff system have increased the average tariff rate in the US to 17.3%, according to a new report released by the Sri Lanka Institute of Policy Studies.
The report also points out that this is the highest average tariff rate in the US since 1935. As a result, although the 20 % tariff imposed on Sri Lanka provides some relief compared to the tariff rates imposed on other countries under the reciprocal tariff system, the tariff rate imposed on Sri Lankan products in the US remains high, the report also points out.
The report states that due to the negative impact of President Trump’s tariff policy on Sri Lanka’s products in all sectors in the US market, the country could lose about US$ 634 million per year.
Accordingly, a tariff rate of 36.8 % has been imposed on Sri Lankan apparel products exported to the US and a tariff rate of 20.2% on rubber products has been imposed since the 7th.
The main exports to the US are apparel products and rubber products. The report issued by the Sri Lanka Institute of Policy Studies states that of the 36.8 percent tariff rate imposed on Sri Lankan apparel products in the US, 20% is the tariff imposed under the reciprocal duty-free system and the remaining 16.8% is the basic tariff rate.