U.S. President Donald Trump has officially reduced tariffs on Sri Lankan imports to 30%, down from a previously imposed 44% reciprocal tariff. The White House sent a formal letter to President Anura Kumara Dissanayake, confirming the revised rate, which takes effect on August 1, 2025, after the grace period ended on July 9.

In the letter, President Trump warned that any increase in Sri Lankan tariffs would result in a corresponding increase in U.S. tariffs:

“If you raise your tariffs, we will add the same percentage to our current 30%. These tariffs are necessary to correct years of Sri Lanka’s tariff and non-tariff barriers, which caused an unsustainable trade deficit for the U.S.”

Despite the high rate, Sri Lanka’s Ministry of Foreign Affairs, Foreign Employment & Tourism welcomed the move, noting that Sri Lanka received the largest reduction among all affected countries.

Deputy Foreign Minister Arun Hemachandra stated:

“This outcome reflects the strong diplomatic relations and constructive engagement between our two countries. Among all the nations listed, Sri Lanka received the biggest tariff cut.”

Alongside Sri Lanka, the U.S. imposed 30% tariffs on Algeria, Iraq, and Libya, 25% on Brunei and Moldova, and 20% on the Philippines.

Last Monday, the U.S. also announced tariff increases on 14 additional countries and now plans to impose a 50% tariff on Brazil, as per President Trump’s latest announcement.