As of today, Sunday, April 20, 2025, the most significant recent update regarding tariffs on Sri Lanka concerns the United States' imposition of a 44% "reciprocal tariff" on goods imported from Sri Lanka. This tariff went into effect on April 9, 2025.   Here's a breakdown of the situation: US Tariffs on Sri Lanka: Reciprocal Tariff: The United States, under President Donald Trump's new trade policy, implemented a 44% tariff on Sri Lankan goods. This is in addition to any existing baseline tariffs (which are currently at 10% for most countries, but it's unclear if Sri Lanka faces this on top of the reciprocal rate).   Rationale: The U.S. stated this tariff is a "reciprocal measure" in response to Sri Lanka's alleged 88% trade barriers on American goods.   Impact on Key Exports: This tariff is expected to severely impact Sri Lanka's apparel industry, which is its largest export sector and the primary driver of its $3 billion annual exports to the U.S. Garments account for over 70% of these exports.   Potential Consequences: Analysts predict a sharp drop in orders, potential revenue losses of over $600 million annually for the garment industry, factory closures, and significant job losses. This could also worsen Sri Lanka's already fragile economic situation as it recovers from a debt crisis. Sri Lanka's Response and Position: Shock and Concern: The Sri Lankan government and its ruling elite have expressed shock and concern over the high tariff rate.   Call for National Unity: President Dissanayake has called for national unity to face this challenge and is seeking ways to prevent further economic problems. Diplomatic Efforts: A high-level Sri Lankan delegation is scheduled to travel to Washington, D.C., on April 22, 2025, for talks with U.S. trade officials to try and mitigate or lift the tariffs.   Highlighting Economic Vulnerability: Sri Lanka is expected to emphasize its fragile economic state and the potential humanitarian impact of the tariffs, including job losses and reduced income. They may also argue that Sri Lanka is already in the process of phasing down its import tariffs as part of ongoing economic reforms. Domestic Trade Policy Review: The Ceylon Chamber of Commerce has urged the Sri Lankan government to re-examine its own tariff structure and implement measures to improve trade facilitation and ease of doing business. Some economists are also calling for the elimination of para-tariffs to improve Sri Lanka's overall trade competitiveness.   Other Relevant Information: Sri Lanka's Overall Tariff Structure: Sri Lanka generally has a multi-tiered tariff structure with rates ranging from 0% to 30% on most goods. However, it also applies various para-tariffs like the Export Development Board (EDB) Levy (CESS) and the Port and Airport Development Levy (PAL), which can significantly increase the effective tax on imports.   US-Sri Lanka Trade Relationship: The U.S. is Sri Lanka's largest single-country export destination, accounting for approximately 23% of its total merchandise exports in 2024. The U.S. had a goods trade deficit of $2.6 billion with Sri Lanka in 2024.   In summary, the immediate tariff update for Sri Lanka is the significant 44% duty imposed by the United States, which is causing considerable concern and prompting diplomatic and domestic policy responses from Sri Lanka. The coming weeks will be crucial in determining the long-term impact of this tariff on the Sri Lankan economy.