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• New tariff regime takes effect on 7 August.

• White House recalibrates global trade measures under “Liberation Day” policy.

U.S. President Donald Trump has signed an executive order reducing tariffs on Sri Lankan goods to 20% from the previously announced 44%, the White House confirmed on Thursday.

The decision marks a significant adjustment to Washington’s sweeping tariff regime first unveiled in April, when Trump declared a U.S. economic emergency and imposed tariffs of at least 10% on imports from all trading partners — with higher rates on countries running large trade surpluses with the U.S.

Sri Lanka had initially been hit with a 44% tariff in April, which was later revised to 30% in a presidential letter addressed to President Anura Kumara Dissanayake on 10 July. The latest revision lowers the rate further to 20%.

Under the recalibrated tariff plan, which will come into effect on 7 August, the White House announced that:

• Countries with a trade surplus with the U.S. will face a 10% tariff.
• About 40 countries with trade deficits will face a 15% tariff.
• More than a dozen countries will face higher, case-specific tariffs.

A senior administration official said the new framework reflects Trump’s “America First” approach: “President Trump is using tariffs as a necessary and powerful tool to put America First after many years of unsustainable trade deficits that threaten our economy and national security.”

The revised tariff table includes sweeping changes across Asia, Africa, and Europe. Bangladesh’s rate has been reduced from 37% to 20%, Cambodia from 49% to 19%, and Vietnam from 46% to 20%. Meanwhile, Japan and South Korea will both see tariffs cut to 15%. However, some countries, including Laos (40%) and Myanmar (40%), continue to face some of the steepest duties.

The new tariffs will apply from 7 August to allow U.S. Customs and Border Protection time to implement the changes.