Opposition and SJB Leader Sajith Premadasa yesterday warned that the 30% reciprocal tariff imposed on Sri Lanka by US President Donald Trump would have a serious negative impact on the country’s export sector.

Making a special statement, Premadasa said the new tariff would severely affect key industries such as apparel, tea, rubber, information technology, and fisheries. He said that the United States accounts for 26.4% of Sri Lanka’s exports and that in 2024, the total value of exports to the US stood at USD 3.8 billion.

He warned that imposing a 30% duty under the US’s reciprocal tariff strategy would create major challenges for exporters. Currently, 60% of Sri Lanka’s apparel exports are destined for the US, and this tariff is expected to result in a 30–40% drop in orders, he said.

“This will significantly affect not only the apparel industry but also the rubber and tea sectors,” Premadasa said, adding that the reduced dollar inflow could lead to depreciation of the Sri Lankan rupee, which in turn would drive inflation and increase import costs.

He further noted that with around 350,000 people employed in the apparel sector, this tariff hike would deal a severe blow to job security. He warned that it poses a serious obstacle to Sri Lanka’s goal of maintaining its position as an export-driven hub for foreign direct investment.

Premadasa emphasised that although the tariff was later reduced from 44% to 30%, it still represents a substantial retaliatory measure that would inflict significant damage on Sri Lanka’s economy. He warned that countries like Vietnam and Bangladesh could benefit from the situation, as Sri Lanka risks losing high-end apparel brand orders due to price sensitivity in the industry.

He added that value-added products in the tea and rubber sectors would also suffer major setbacks as a result.

“This crisis is something we warned about well in advance through the SJB,” he said. “There is now a question as to whether the current government did everything it could to secure the best possible outcome for Sri Lanka. After President Trump’s election victory, we repeatedly warned both inside and outside Parliament about the consequences of such actions—but did the government fulfill its diplomatic duty to protect the export sector and the interests of the people?”

Premadasa also questioned whether the mechanisms used in negotiations between the two countries were appropriate and effective, and whether they were followed through in the country’s best interest.