A recent ruling by the US Court of Appeals, which found that US President Donald Trump’s tariffs were an unlawful use of presidential authority, could ease the burden on Sri Lankan exports, according to Ministry of Trade, Commerce, Food Security, and Cooperative Development Secretary A. Vimalenthirarajah.

The court’s decision, due to take effect on 14 October, determined that the Trump administration had overstepped its authority in imposing a series of unilateral tariffs on foreign goods. 

Among these measures was a 20% reciprocal tariff on Sri Lankan exports, a levy that has reduced the competitiveness of local products in the US market since its introduction.

Explaining the implications, Vimalenthirarajah said that if the ruling were to stand, Sri Lankan exports would automatically revert to the Most-Favoured Nation (MFN) rate, which is the standard tariff applied to all World Trade Organization (WTO) members. 

“If the reciprocal tariff is suspended, then our exports will go back to the MFN rate. That means the additional 20% duty will no longer apply,” he said.

However, he cautioned that the situation was still evolving, with the ministry yet to receive official confirmation from the Sri Lankan Embassy in Washington. The US Government is also expected to appeal the ruling to the Supreme Court, a move that could delay the suspension of the tariffs. 

“If an appeal is filed, the tariffs could remain in place until the Supreme Court delivers its final decision,” Vimalenthirarajah explained. “This is similar to our own system, where a decision can be put on hold if it is challenged in a higher court.”

Should the Supreme Court decide to uphold the appeal, he added, the tariffs could remain in effect for an extended period.