Sri Lanka does not expect immediate hit from Trump tariffs: Industries Minister
ECONOMYNEXT – Sri Lanka does not expect an immediate hit from any tariffs imposed by US President Donald Trump but the country is working on a new tariff policy, Industries Minister Sunil Handunetti said.
“We do not think immediately there will be a threat, but in the future we hope to put forward a new tariff policy,” Minister Handunetti told reporters.
“The initial work is completed. In the future we hope to bring it to parliament and pass it.
“I do not expect there to be an immediate problem. There could be opportunities from trade disruptions with other countries.
Sri Lanka was planning free trade agreements with other countries in Asia in the future, Minister Handunetti said.
“We are thinking of a number of free trade agreements, especially in the Asia-Pacific region, with countries like Malaysia and Indonesian and Japan and Korea and Middle Eastern countries. Today also we had a discussion with the ambassador of Korea.
“I think we will have the opportunity to enter into free trade agreement. Even with India we can discuss the free trade agreement and improve it.”
President Trump had variously threatened a broad 10 percent tariff, graduated tariff on the ‘dirty 15’ countries and also reciprocal tariffs and also trade deficits.
Some countries with high tariffs, including India has proposed cut in their own duties, while largely free trading countries have threatened to hike taxes on US good.
A detailed announcement on so-called Liberation Day tariffs which will restrict the trade freedoms of Americans are expected to be announced later in April 02.
VAT, or more precisely VAT refunds were also lumped together with other border taxes.
Trump was elected after persistent high inflation generated by the Federal Reserve and a further downturn is expected.
Import duties were originally enacted by the Congress, but now they are coming as executive decisions. Executive decisions proliferated during Franklin Roosevelt’s rule during the Great Depression as did import duties.
