EconomyPoliticsHOTWednesday, June 3, 2026

US Proposes 12.5% Tariffs on Sri Lanka Over Forced Labor Imports

TLDR

US proposes 12.5% tariff on Sri Lanka imports.
Action targets forced labor imports; 45 nations face highest rate.
Part of broader US action affecting ~60 economies under Section 301.

The U.S. Trade Representative's office has proposed imposing additional tariffs on imports from 60 economies, including Sri Lanka. This action stems from a determination that these countries have failed to effectively curb trade in goods produced with forced labor. Under the proposed measures, Sri Lanka would face a 12.5% additional duty on its exports to the United States. The USTR cited the unreasonable restriction on U.S. commerce and insufficient measures to prohibit such imports as reasons for the proposal, which is part of a Section 301 unfair trade practices investigation.

2 Updates

Update #3\u00b7 Jun 4 · 12:33 AM

The US Trump administration has proposed additional import duties ranging from 10% to 12.5% on goods from approximately 60 countries, citing failure to prevent imports linked to forced labor. Sri Lanka is specifically identified as being among 45 other nations that would face the higher 12.5% tariff, while countries like Canada, Mexico, Pakistan, Bangladesh, and Malaysia are proposed for a 10% tariff. The measures are being proposed under Section 301 of the US Trade Act of 1974.

Update #2\u00b7 Jun 3 · 9:31 AM

Sri Lanka is among approximately 60 economies identified by the US Trade Representative (USTR) for potential additional import duties, including a 12.5% tariff, due to their failure to prevent imports linked to forced labor. The measures are being proposed under Section 301 of the US Trade Act of 1974 by the Trump administration.

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