Sri Lanka to present trade deficit proposal to U.S. amid tariff fallout

A proposal aimed at minimizing the trade deficit between the two countries, in line with U.S. recommendations, is expected to be presented to U.S. authorities during a special discussion scheduled for Tuesday (April 8), according to Dr. Anil Jayantha, Minister of Labour and Deputy Minister of Economic Development.

He made this announcement yesterday (April 6).

He shared this information during a special press briefing held to inform the public about the impact of the new U.S. tariff policy on Sri Lanka.

Elaborating further, Dr. Anil Jayantha stated:

“Following the imposition of the 44% tariff, approximately 80–86% of our key export categories have been affected. This includes the apparel sector, plastic and rubber products, processed food items, jewelry, and more—altogether making up about 86%. With these tariffs in place, our goods lose competitiveness. So, what can we do? The U.S. has proposed that we reduce the trade deficit. We held a meeting with U.S. trade representatives, who requested that we present our proposals to reduce the trade deficit. We will present our final proposal this coming Tuesday.”

Question: Vietnam has reduced tariffs on U.S. goods to 0%. Do we have a similar plan?

Answer: “The U.S. proposed a general rate of 10%. If the U.S. import rate is 20% or less, then we can negotiate a similar 20% rate. Special attention will be given to the five key categories mentioned earlier.”

Question: During the Indian Prime Minister’s visit, did the government request assistance from India to resolve this issue?

Answer: “We made a request, and they said they would consider it.”

Meanwhile, the American public has launched a massive protest campaign called “HANDS OFF”, voicing strong opposition to the new tariff policy introduced by U.S. President Donald Trump, along with other harsh socio-economic measures.

This wave of protests, held in over 1,200 locations across all 50 states, marks the most significant public opposition Trump has faced since assuming office.

Additionally, billionaire Elon Musk has faced severe public criticism for his involvement in government-related activities.

Protests against Trump’s tariff policies have also erupted in several other countries, including Germany, Britain, France, and Portugal.

---

---