Sri Lanka Pushes for U.S. Tariff Exemption on Apparel Exports

Sri Lankan officials are seeking to avoid a newly proposed U.S. labour‑related tariff that could reach 12.5% on the island’s exports. A senior government minister expressed optimism that diplomatic engagement could secure an exemption or revision of the levy, emphasizing its importance for the garment and apparel sector that employs hundreds of thousands of workers.

The Ceylon Chamber of Commerce urged the government to engage Washington urgently, warning that the tariff would hurt export competitiveness, especially as Sri Lanka’s apparel and tea shipments have already fallen by 7% and 6% respectively in early 2026. The Chamber highlighted Sri Lanka’s reputation for responsible sourcing and called for a reduction or removal of the proposed tariff to preserve confidence among exporters and investors.