Sri Lankan rubber exporters press for reduced Trump tariff
Kamal Silva, a spokesman for the exporters, said the tariff must be kept between 15 and 20 per cent to retain their edge over regional competitors.
'Indonesia has gained a clear advantage already as Sri Lanka with the current 30 cent tariff will find it extremely hard to do business with the US," he said.
'Even before the new tariff came, Sri Lankan exporters found it hard to compete with Indonesia. A 15 per cent tariff would be our ideal rate to be competitive in the US market," Silva said.
He said the rubber exports fetched USD 300 million annually from the US market.
Dhammika Fernando, the spokesman of the Sri Lankan Free Trade Zone Exporters Association, said Indonesia had gained a clear advantage in the new tariff structure unveiled by US President Donald Trump.
'We have been told by the government that 1600 items and services will be allowed tariff free by the US. This will be good news if it comes through," Fernando said.
A Sri Lankan government delegation is currently in the US to negotiate a trade deal.
Deputy Economic Development Minister Anil Jayantha told reporters the US and Sri Lanka were discussing 1161 items, out of which Washington offered zero tariffs for about 80 items.
In April, the US imposed a 44 per cent tariff on Sri Lanka.
The US brought the tariff down to 30 per cent on Sri Lanka in the latest letter sent by the Trump administration.
The apparel industry also said the high tariff would endanger the apparel exports by making Sri Lankan products uncompetitive in the US market.
Sri Lanka exports 3 billion dollars worth of goods, while the US sends to Sri Lanka USD 300 million worth of goods annually.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
30 minutes ago
- Hindustan Times
A 1988 jet crash, 133 deaths and an unending struggle
Aam Aadmi Party MP Ashok Kumar Mittal condemned President Trump's announcement of a 25% tariff on Indian products, labeling it "illogical" and highlighting US double standards in trade. He defended India's oil purchases from Russia and expressed confidence in the Indian industry's resilience, suggesting potential growth opportunities despite the tariffs. India's Ministry of External Affairs criticized the move as "unfair" and vowed to protect national interests.
The Hindu
30 minutes ago
- The Hindu
Germany, Ukraine's second biggest backer, is ready to play a larger role
Since June, the intensity of Russian attacks on Ukrainian territories has increased significantly, leading to a large number of civilian deaths. June 2025 recorded the highest civilian casualty since the start of the Russia-Ukraine war in February 2022. As per numbers by the UN Human Rights Mission in Ukraine, 232 people were killed and 1,343 were wounded. On 30 June, German Foreign Minister Johann Wadephul travelled to Kyiv to reiterate Germany's military, financial, economic and humanitarian support for Ukraine. 'In Ukraine, it will be decided whether our Europe remains a place where freedom and human dignity hold sway, or becomes a continent on which violence can be used to redraw borders,' said Mr. Wadephul. This follows visits by Ukrainian President Volodymyr Zelenskyy to Berlin in May and German Defence Minister Boris Pistorius to Kyiv in mid-June. Mr. Pistorius announced a total German military aid worth €9 billion for 2025. German Chancellor Friedrich Merz in the Bundestag on July 9 said that all diplomatic means to resolve the Russia-Ukraine war had been exhausted. 'When a criminal regime openly questions another country's right to exist with military force and sets out to destroy the political order of freedom on the entire European continent, the federal government I lead will do everything in its power to prevent this,' said Mr. Merz. Patrick Keller, the head of the Centre for Security and Defence at the Berlin-based German Society for Foreign Relations (DGAP), notes that Germany has been at the forefront in supporting Ukraine since 2022. However, he acknowledges that in the light of the increased Russian aggression, these efforts look insufficient. 'We have to continue to increase our efforts. With the change in the German government, there has been a new focus on defence and security policy overall. It is understood that the Ukrainian effort also serves as a deterrent for Europe in the era of an aggressive Russia,' said Mr. Keller. Niklas Balbon, Research Fellow with the Global Public Policy Institute (GPPi), a Berlin-based think tank, noted that while Germany has promised financial aid to Ukraine, the challenge is how soon Ukraine's weapons production can be scaled up. Trump's flip-flop Ever since U.S. President Donald Trump's infamous White House meeting with Ukraine's Mr. Zelenskyy in February this year, Europe has been on tenterhooks. The U.S. remains one of the largest members of the North Atlantic Treaty Organisation (NATO), but Mr. Trump has made it clear that European countries must increase their defence spending. Mr. Trump's views on Russian President Vladimir Putin have also gone from being positive following some 'respectful conversations' earlier this year to outright criticism in the last month. Mr. Keller notes that one cannot change the fundamental attitude of the current state of affairs with the U.S. government, but can make the most of it. 'In the current situation, Mr. Trump is getting increasingly critical of Mr. Putin and is willing to support Ukraine in innovative ways. Europe has to jump at this opportunity. We really need to get going with increased capacity in Ukraine and helping them to produce weapons on their own. The German defence industry is more than ready to build in Ukraine and help them scale and build weapons-making factories,' said Mr. Keller. Ukraine does produce close to 40% of the weapons it uses in the war at home, as of mid-2025, and U.S. support covers 30%. There are plans to increase domestic weapons production to 50% within the next six months, as per Mr. Zelenskyy. This is where Germany is expected to help out. In 2024, drones manufactured in Ukraine made up 96% of all unmanned aerial vehicles used in combat. Ukraine is approaching a capacity to make 4 million drones annually by this year. Mr. Balbon notes that even though Europe would like to be more independent from the U.S., it does not have the capabilities to be more autonomous or produce the weapons needed in Ukraine quickly enough. 'European decision makers are thinking about how to game the U.S. administration to support Ukraine, while also allowing Mr. Trump to sell it as a victory to his voter base. The NATO countries buying weapons from the U.S. to donate to Ukraine is one such way,' said Mr. Balbon. As per NATO General Secretary Mark Rutte, Germany, Norway, Denmark, Sweden, Finland, Britain, the Netherlands, and Canada are ready to buy weapons from the U.S. to be donated to Ukraine. The weapons include Patriot missile batteries and air defence systems, F-16 fighter jets, Howitzer artillery systems and more. Patriot is the world's most advanced air-defence system. In May, Mr. Merz had said that there would be no range restrictions for weapons that would be delivered to Ukraine. However, Defence Minister Mr. Pistorius has said that Germany won't be providing Kyiv with the long-range Taurus cruise missiles that can strike targets that are 500 km away. 'If one looks at the Patriot systems, the U.S. has 60 ready, whereas Germany just has 4-6. It is a question of scale and timing, as it takes months to build them. If Ukraine needs these systems now, the most effective way is to buy them from the U.S.,' said Mr. Keller, noting that despite all the challenges posed by the Trump government, Europe cannot give the impression that it wants the U.S. out – it's in no one's interest. Modern warfare While Germany has announced billions in aid for helping Ukraine build weapons, experts say that investments have to be made in the right capabilities, keeping in mind the nature of future warfare. 'The warfare of the future will rely a lot on unmanned drones, AI technology, space-based systems and so on, so you would need a smart combination of various factors to succeed,' said Mr. Keller, noting that a large part of defence spending has to go to nimble industries and startups over large defence contractors. German defence startups such as Helsing, Quantum Systems, Stark Defense have been at the forefront of providing drones to Ukraine alongside large defence players like Rheinmetall. 'It is important to keep in mind that the biggest innovator and driver in drone warfare is Ukraine. NATO countries are learning from this and playing catch-up. German military is also learning how Ukrainians are using drones, so there is a flow of knowledge in both directions,' said Mr. Balbon. Political challenges Even before the new government led by the coalition between the conservative Christian Democrats (CDU/CSU) and centre-left Social Democrats (SPD) assumed office, Germany had agreed on a €500 billion budget to be spent on civilian, climate, economic and defence needs. This special budget is over and above Germany's annual budget. For sectors like infrastructure and defence spending, Germany also exempted the conservative 'debt brake' that only allowed it to borrow 0.35% of its GDP. 'The lifting of the debt brake allows the German government to balance defence spending with other forms of spending when it comes to lifting the economy, improving domestic infrastructure and so on. In the ruling coalition, the CDU also wants to reform social spending and lower expenditure, as they argue that the German government is spending too much money. For Social Democrats, that's not in their interest. This is the key tension,' said Mr. Balbon. 'The increased defence spending isn't just key for Germany, but also largely for Europe, as it is a deterrence against Russia in the mid-term. The capabilities that are being acquired with this money, in theory and practice, can be sent to Ukraine as well,' said Mr. Keller. But it does come with some political backlash from the far right and far left parties within Germany. According to Mr. Balbon, the far left parties are opposed to military spending in general, as they don't want Germany to invest in armed forces. 'The far right (namely, Alternative for Germany or AfD) are more interested and aligned ideologically with Russia. But there's a paradox – they want Germany to stop supporting Ukraine, but they also want a stronger German military whilst negating the very reason there is a need for larger German defence spending - namely, Russian aggression,' said Mr. Balbon. 'Given German history, there's an inherent criticism of militarisation and spending on military purposes as opposed to spending on social benefits, childcare, rent and so on. It will be important for defence planners and the industry representatives to get this mix right,' said Mr. Keller. Neighbours perception Given Germany's history, especially in the Second World War, it is generally wary of taking any leadership position within Europe. When it comes to Ukraine, Germany has been the second-largest supporter, after the US, in terms of weapons and aid. Germany's increased spending isn't scaring its neighbours but is being welcomed, noted Mr. Keller. 'Historically difficult neighbours, such as the Baltic countries, Poland, and the Czech Republic, feel that Germany is finally living up to its responsibility. It has prompted other wealthy EU countries, such as France, to increase their own defence spending,' said Mr. Keller. Mr. Balbon concurs. 'The predominant fear in Europe and Germany is that at some point in the future, Russia will attack the Baltic countries. It's not so much a fear of massive on-ground invasion, but that Russia will try out some smaller level attack to see how NATO responds – whether it will trigger Article 5 or which members will come to help,' said Mr. Balbon. Article 5 is a cornerstone of NATO, which states that an armed attack against any one NATO member is an attack against all. Meaning if any NATO member is attacked, other members are obligated to assist by 'such action as it deems necessary, including the use of armed force'. At the recent NATO Summit in The Hague on June 24-25, all 32 member countries agreed to increase their defence spending to 5% of their GDP by 2035. Germany now has a permanent brigade (to have 5,000 troops by 2027) in Lithuania, which is one of the three Baltic countries bordering Russia. Estonia and Latvia are also expected to get a European multinational battlegroup presence. Mr. Keller notes that there are no guarantees that all NATO members would fulfil the 5% target, given past record when many countries failed to fulfil the 2% target. 'Domestic political pressure and economic reasons may cause individual countries to lag behind. That should not happen, and it is the responsibility of wealthy countries to lead by example. This is why it is important for Germany to fulfil its obligations. There is a shared perception among the NATO members that they are stronger united,' said Mr. Keller. (Nimish Sawant is an independent journalist based in Berlin)
Mint
30 minutes ago
- Mint
Trump plans 100% tariff on computer chips, semiconductors: Will electronics get costlier?
United States President Donald Trump said on Wednesday, August 6, that he would impose a 100 per cent tariff on computer chips and semiconductors, but added that companies that manufacture computer chips in the country would be spared the tax. With the 100 per cent tariffs on computer chips and semiconductors, the prices of electronics, automobiles, household appliances, and other digital-age essentials are likely to rise. Speaking at the Oval Office, Donald Trump said, 'We'll be putting a tariff on of approximately 100% on chips and semiconductors.' 'But if you're building in the United States of America, there's no charge.' The development comes just after Donald Trump imposed an additional 25 per cent tariffs on Indian products for its purchases of Russian oil, bringing combined tariffs on the country to 50 per cent. The tariffs are set to take effect in 21 days, giving India and Russia a window to negotiate with the administration over the import duties. During the Covid-19 pandemic, a shortage of computer chips increased the price of autos and contributed to an overall uptick in inflation. Demand for computer chips has been climbing worldwide, with sales increasing 19.6% in the year-ended in June, according to the World Semiconductor Trade Statistics organization. Trump's tariff threats mark a significant break from existing plans to revive computer chip production in the United States. He is choosing an approach that favors the proverbial stick over carrots in order to incentivize more production. Essentially, the president is betting that higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for mobile phones, TVs and refrigerators. By contrast, the bipartisan CHIPS and Science Act signed into law in 2022 by then-President Joe Biden provided more than $50 billion to support new computer chip plants, fund research and train workers for the industry. The mix of funding support, tax credits and other financial incentives were meant to draw in private investment, a strategy that Trump has vocally opposed.
