The Failure of the Sri Lankan Delegation in U.S. Trade Negotiations
Posted on July 17th, 2025
Newspaper Version (Op-Ed Articel)
Just days ago, we were told that trade discussions with the United States were progressing well” and all under control.” Now, we face the reality: a 30% U.S. tariff on Sri Lankan goods, effective August 1st.
According to foreign media, Sri Lanka has been grouped with Algeria, Iraq, and Libya — all facing the same punitive 30% tariff under the revised U.S. trade policy. Brunei and Moldova face 25%, and the Philippines 20%, while Malaysia has a much lower tariff with a win-win situation.
This outcome reflects a complete failure of negotiation by the Sri Lankan team and its advisors with inflated self-worth. Whether due to lack of experience, poor preparation, overestimation of their position, lack of strategy and attention to detail, poor understanding of what the USA is expecting, or sheer arrogance, the result is both disappointing and unacceptable.
The U.S. team, by all accounts, acted reasonably. The failure lies squarely on our side. A competent, strategic team would have aimed to negotiate the tariff down to 15% or lower. That did not happen. Instead, we sent a bloated team abroad, at public expense, and got no meaningful result.
Frankly, even without sending a delegation, Sri Lanka might have received the same tariff rate. This calls into question the very purpose of the trip and the advisors involved.
Why wasn’t this negotiated down to 10–15%?
Who is accountable for this debacle? This must be investigated — we cannot afford such incompetence. Shouldn’t more competent people with a better understanding of the needs, fundamental facts, and experience in high-end trade negotiations be sent to the USA?
There must be accountability and transparency. We cannot afford to repeat such costly blunders on the global stage. The country deserves better. As usual, we would not hold our breath to see anyone held accountable for these ongoing failures. #SriLanka #TradeFailure #Tariffs #Accountability #USTrade
July 17th, 2025 at 5:15 pm
President Donald Trump said Wednesday that the United States has struck a trade deal with Vietnam that includes a 20% tariff on the Southeast Asian country’s imports to the U.S.
Trump’s announcement on Truth Social said that the deal will give the U.S. tariff-free access to Vietnam’s markets.
Vietnam also agreed that goods would be hit with a 40% tariff rate if they originated in another country and were transferred to Vietnam for final shipment to the United States.
The process, known as transshipping, is used to circumvent trade barriers. China, a top exporter to the U.S., has reportedly used Vietnam as a transshipment hub.
Trump wrote that “Vietnam will pay” that 20% duty, but tariffs are taxes on foreign goods that are paid by the importers of those products.
The agreement was unveiled less than a week before a 90-day pause on many of Trump’s so-called reciprocal tariffs was set to expire, sending U.S. duties on imports from dozens of countries soaring.
Under that protectionist trade plan, Vietnamese imports to the U.S. were subject to a 46% blanket tariff. That rate was lowered to 10% during the 90-day interim. Raising the tariff on Vietnamese goods to 20% will hike costs for U.S. importers, which could be passed on to consumers or suppliers.
The S&P 500 nevertheless rose slightly on news of the trade deal.