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Colombo, Jul 10 (PTI) Sri Lankas main opposition has slammed the government over the 30 per cent tariff imposed by the US on all imports from the island nation, calling it a result of poor negotiations. The US on Wednesday sent letters to the heads of seven countries, including Sri Lanka, imposing tariffs on their imports.

The move is part of a broader trade initiative targeting multiple countries.  Reacting to these tariffs by the US, main opposition leader Sajith Premadasa said: the 30 per cent was not adequate and it was the price we pay for poor negotiations.

Sri Lanka held two rounds of talks to negotiate the new tariff, which the analysts said would endanger 50,000 jobs in the export sector.

The letter addressed to President Anura Kumara Dissanayake stated the new 30 per cent tariff would come into force from August 1.

Starting from August 1, 2025,we will charge Sri Lanka a tariff of only 30 per cent on any and all Sri Lankan products sent to the United States, separate from all sectoral tariffs, said the letter.

Meanwhile, economist Talal Rafi said that : 30 per cent would be a hard hit to the local economy and added that Sri Lanka should have agreed to reduce the tariffs on US exports.

Vietnam has got away with only 20 per cent because they agreed to eliminate duties on American goods: Rafi said.

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According to analysts, Sri Lanka’s 30 per cent tariff, a drop from the 44 per cent proposed in April, was the sharpest reduction among the countries targeted by the Trump administration.

In the US policy of correcting its trade imbalances globally, announced in April the tariff was fixed at 44 per cent for Sri Lanka, half of the 88 per cent Colombo charges Washington for imports to the island nation.

Indonesia and Thailand's tariffs remained unchanged at 32 and 36 per cent. Both countries are Sri Lanka’s competitors for rubber exports to the US.

Sri Lankas annual exports to the US were valued at USD 3 billion. 

(This report has been published as part of the auto generated syndicate wire feed. Apart from the headline,no editing has been done in the copy by ABP Live.)