Foreign media reports that the US has imposed an additional 12.5% tariff on imports from Sri Lanka.
The media further states that this decision has been taken with the aim of making the American market a fairer place by preventing the import of goods manufactured using forced labor.
Accordingly, the US administration has decided to impose additional import duties ranging from 10% to 12.5% on goods imported from 60 countries, including Sri Lanka.
According to the implementation of this new tax amendment proposal, an additional 10% tariff is to be imposed on several countries including Canada, Mexico, Pakistan, Bangladesh and Malaysia. A higher tariff of 12.5% is to be imposed on the group that includes 45 countries, including Sri Lanka.
The US Trade Representative's office points out that a special investigation has revealed that Sri Lanka has failed to prohibit the import of goods produced through forced labor and to effectively enforce the relevant legal provisions.
However, the proposal also proposes to include a special mechanism that could provide some relief to the garment and textile sector, a major export sector of the country, although what it is has not been announced yet. It is said that due to this new tax, Sri Lankan products are more likely to be rejected from the American market.