US President Donald Trump has announced 'reciprocal' tariffs on countries worldwide, including a 44% tariff on all goods from Sri Lanka.
The tariffs were imposed in response to what Trump said were 'Tariffs charged to the US including currency manipulations and Trade Barriers'.
The 44% tariff on Sri Lanka marks the fourth-highest tariff on an Asian country imposed by the United States, which is the top destination for Sri Lankan goods worldwide.
“This is one of the most important days, in my opinion, in American history,” said Trump on Wednesday. “It’s our declaration of economic independence.”
In 2024, the US imported more than $US 3 billion of Sri Lankan goods, making it the top buyer worldwide. The US imports more than double the amount of goods from the island compared to Sri Lanka's next biggest trade partner, the United Kingdom.
According to the United States Census Bureau, in January 2025 alone, more than US$346 million of Sri Lankan goods were imported into the country.
A new tariff now threatens to slash much of that and could mark a devastating blow to an already fragile Sri Lankan economy.
There has been no immediate reaction from Sri Lanka so far.