U.S. Reduces Safeguard Duty on Sri Lankan Exports to 20%

04-Aug-2025

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U.S. President Donald Trump has signed an executive order reducing the previously imposed 30% safeguard duty on Sri Lankan exports to 20%, as confirmed by the White House. This move brings some relief to Sri Lanka’s economy and export trade.

Back in April, Trump imposed a 44% safeguard duty as part of his new trade policy, though it was suspended for 90 days.

Sri Lankan ministers and officials held direct and virtual negotiations with U.S. trade representatives. Following these discussions, the U.S. announced on July 2 that the duty would be reduced to 30%.

Despite the reduction, Sri Lankan exporters found it difficult to bear the cost. Continuous negotiations eventually led to the reduction to 20%. Discussions are also underway for a potential trade agreement.