logo
JAAF welcomes revised 20% US tariff on Sri Lankan apparel

JAAF welcomes revised 20% US tariff on Sri Lankan apparel

Fibre2Fashiona day ago
The Joint Apparel Association Forum (JAAF) has welcomed the revised reciprocal tariff rate of 20 per cent on Sri Lankan exports to the United States and commended the Government of Sri Lanka for its steadfast efforts in securing this critical outcome for the apparel sector.
JAAF has welcomed the revised 20 per cent US tariff on Sri Lankan apparel exports, praising President Dissanayake and officials for securing a fair outcome. It also commended ambassador Samarasinghe and the Washington embassy for their role. The move aligns Sri Lanka with regional peers and helps preserve competitiveness while supporting ethical, sustainable trade.
JAAF extends its sincere gratitude to President Anura Kumara Dissanayake for his leadership, and to the negotiating team led by Dr. Harshana Suriyapperuma, secretary to the Treasury, for their pragmatic and sustained engagement since the initial tariff announcement in April. Their appreciation is also directed toward the tireless efforts throughout this complex process, which have been instrumental in achieving a fair and competitive outcome for Sri Lankan exporters.
The association also wishes to acknowledge the invaluable role played by Mahinda Samarasinghe, ambassador of Sri Lanka to the United States, and the Sri Lankan Embassy in Washington, DC. Their ongoing diplomatic engagement and advocacy were pivotal in facilitating constructive dialogue with US stakeholders, JAAF said in a release.
The revised tariff rate brings Sri Lanka into closer alignment with other leading apparel-exporting nations in the region—including Bangladesh, Cambodia, Vietnam, Indonesia, and Pakistan—thereby ensuring a more level playing field and preserving the competitiveness of Sri Lanka's apparel industry in the key US markets.
JAAF remains firmly committed to working in close partnership with the Government of Sri Lanka and its counterparts in the United States to promote ethical labour practices, environmental sustainability, and innovation in apparel manufacturing. The association is confident that these shared values, combined with continued diplomatic engagement, will contribute to deeper bilateral trade relations, and pave the way for further tariff reductions in the future.
Fibre2Fashion News Desk (HU)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Charting the global economy: US job market wavers in cue for Fed
Charting the global economy: US job market wavers in cue for Fed

Economic Times

timean hour ago

  • Economic Times

Charting the global economy: US job market wavers in cue for Fed

Synopsis Central banks globally are reacting cautiously, with many holding rates steady amidst these complex conditions and trade tensions. iStock Signs of a sluggish job market and the risk of a reacceleration in inflation due to higher import duties are dueling forces dividing Federal Reserve officials over the path of interest rates. The US labor market is wavering after a slowdown in economic growth during the first half of the year — implications of heightened uncertainty tied to trade policy. President Donald Trump unveiled a slew of new tariffs that boosted the average US rate on goods from across the world, forging ahead with his effort to reshape international commerce and bolster American manufacturing. The baseline rates for many trading partners remain unchanged at 10% from the duties Trump imposed in April. Signs of a sluggish job market and the risk of a reacceleration in inflation due to higher import duties are dueling forces dividing Federal Reserve officials over the path of interest rates. In the wake of a weak jobs report on Friday, Treasury yields declined on bets the Fed will lower interest rates as soon as September after keeping them unchanged this Canada, central bankers left interest rates unchanged, while keeping the door open to more cuts if the economy weakens and inflation pressures stay in check. The Bank of Japan also held the line on borrowing are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics: US Job growth slowed sharply over the past three months and the unemployment rate rose in July, showing the labor market is shifting into a lower gear amid widespread economic uncertainty. Not only is job growth cooling markedly and unemployment rising, it's harder for unemployed Americans to get a job and wage gains have largely stalled. That poses further risks to a slowdown in consumer and business spending that's already underway. Economic growth moderated through the first half of the year as consumers tempered their spending after a late-2024 splurge and companies adjusted to frequently shifting trade policy. While gross domestic product increased at a solid 3% annual rate, final sales to private domestic purchasers, a narrower metric of demand, rose at the slowest since the end of 2022. Factory activity contracted in July at the fastest pace in nine months, dragged down by a faster decline in employment as orders continued to shrink. A measure of employment slid to the lowest level in more than five years, suggesting producers are stepping up efforts to control costs amid higher tariffs and softer The euro-area economy unexpectedly eked out growth in the second quarter, benefiting from better-than-predicted performances in France and Spain. Gross domestic product increased 0.1%. While the results suggest some resilience in the 20-nation bloc at a time of heightened uncertainty, they mask economic contractions in Germany and Italy, the region's biggest and third-largest members. As European Union leaders work through the consequences of their new trading arrangement with the US, they are confronting the bitter reality of just how far they have fallen. Even with the unpalatable terms, the EU may struggle to deliver on its new commitments to the US. Asia Bank of Japan Governor Kazuo Ueda kept investors guessing over the timing of his next interest rate hike with comments that cooled expectations of a near-term move and weakened the yen. The BOJ kept the overnight call rate at 0.5% at the end of a two-day policy meeting in a widely expected unanimous vote. China Commands A Big Share of Global Manufacturing | Its share of global manufacturing value added is almost 30%China's top leadership emphasized its determination to reduce excess competition in the economy, with President Xi Jinping endorsing a campaign targeting one major cause of deflation and tensions with trade partners. Major Items US Imports from India Trump said Thursday he would impose a 25% tariff on India's exports, before following through a day later, and threatened an additional penalty over the country's energy purchases from Russia. India is weighing options to placate the White House, including boosting US imports, and has ruled out immediate retaliation, according to people familiar with the matter. Emerging Markets The global trade war that Trump unleashed from the Rose Garden that afternoon shook investor confidence in the US economy so much that it sparked a stampede out of the dollar. Much of that money has flowed into other developed countries but billions have washed up in developing nations, reviving a market that for more than a decade had been relegated to a mere afterthought in investing circles. Chile's economic activity unexpectedly fell for the second month in June as a plunge in mining offset gains across other sectors in one of Latin America's richest nations. Mexico Grows More Than Forecast in Second Quarter | GDP rose 0.7% from 1Q; output climbs 0.1% from year agoMexico's quarterly economic growth came in higher than expected in the three months through June as manufacturing and services powered Latin America's second-largest economy despite US tariffs. World At an average of 15%, the world is still facing some of the steepest US tariffs since the 1930s, roughly six times higher than they were a year ago. Trump's latest volley outlined minimum 10% baseline levies, with rates of 15% or more for countries with trade surpluses with the US. The months of negotiations, marked by Trump's social-media threats against US allies and foes alike, ended with new rates that were largely in line or lower than those on April 2. The world economy will keep weakening and remains vulnerable to trade shocks even though it is showing some resilience to Trump's tariffs, the International Monetary Fund said. Its updated projections are slightly better than those in April, but largely reflect distortions such as front-loading in anticipation of tariffs. Central Bank Watch In addition to the US, Canada and Japan, central bankers in Pakistan, Georgia, Singapore, Brazil, Colombia, Dominican Republic, Malawi and Eswatisi held interest rates steady. Chile, South Africa and Mozambique cut rates. Ghana lowered borrowing costs by the most on record.

JAAF welcomes revised 20% US tariff on Sri Lankan apparel
JAAF welcomes revised 20% US tariff on Sri Lankan apparel

Fibre2Fashion

timea day ago

  • Fibre2Fashion

JAAF welcomes revised 20% US tariff on Sri Lankan apparel

The Joint Apparel Association Forum (JAAF) has welcomed the revised reciprocal tariff rate of 20 per cent on Sri Lankan exports to the United States and commended the Government of Sri Lanka for its steadfast efforts in securing this critical outcome for the apparel sector. JAAF has welcomed the revised 20 per cent US tariff on Sri Lankan apparel exports, praising President Dissanayake and officials for securing a fair outcome. It also commended ambassador Samarasinghe and the Washington embassy for their role. The move aligns Sri Lanka with regional peers and helps preserve competitiveness while supporting ethical, sustainable trade. JAAF extends its sincere gratitude to President Anura Kumara Dissanayake for his leadership, and to the negotiating team led by Dr. Harshana Suriyapperuma, secretary to the Treasury, for their pragmatic and sustained engagement since the initial tariff announcement in April. Their appreciation is also directed toward the tireless efforts throughout this complex process, which have been instrumental in achieving a fair and competitive outcome for Sri Lankan exporters. The association also wishes to acknowledge the invaluable role played by Mahinda Samarasinghe, ambassador of Sri Lanka to the United States, and the Sri Lankan Embassy in Washington, DC. Their ongoing diplomatic engagement and advocacy were pivotal in facilitating constructive dialogue with US stakeholders, JAAF said in a release. The revised tariff rate brings Sri Lanka into closer alignment with other leading apparel-exporting nations in the region—including Bangladesh, Cambodia, Vietnam, Indonesia, and Pakistan—thereby ensuring a more level playing field and preserving the competitiveness of Sri Lanka's apparel industry in the key US markets. JAAF remains firmly committed to working in close partnership with the Government of Sri Lanka and its counterparts in the United States to promote ethical labour practices, environmental sustainability, and innovation in apparel manufacturing. The association is confident that these shared values, combined with continued diplomatic engagement, will contribute to deeper bilateral trade relations, and pave the way for further tariff reductions in the future. Fibre2Fashion News Desk (HU)

Trump tariffs rake in big money, but who is paying?
Trump tariffs rake in big money, but who is paying?

Time of India

time2 days ago

  • Time of India

Trump tariffs rake in big money, but who is paying?

US president Donald Trump has imposed tariffs on dozens of countries, including India, an unprecedented act in American history for its scale as well as severity. Trump said Thursday that sweeping tariffs he has imposed on nations around the world were making the country "great & rich again". Tariff revenues have witnessed a sudden spurt in recent months. Trump and his supporters have repeatedly advanced the argument that tariffs are forcing other countries to pay up. But it's not that simple. Technically, American companies which import goods from other countries pay the tariffs. In reality, tariffs are spread across the whole chain -- from exporters to American importers , distributors, retailers and consumers. In fact, often it's the Americans who end up paying greater part of tariffs that the US government earns. Bump in US tariff revenue US customs duty collections surged again in June as President Donald Trump's tariffs gained steam, topping $100 billion for the first time during a fiscal year and helping to produce a surprise $27 billion budget surplus for the month, as per a Reuters report citing the Treasury Department data. The budget data showed that tariffs are starting to build into a significant revenue contributor for the federal government, with customs duties in June hitting new records, quadrupling to $27.2 billion on a gross basis and $26.6 billion on a net basis after refunds. For the first nine months of fiscal 2025, the customs take reached records of $113.3 billion on a gross basis and $108 billion on a net basis, nearly double the prior-year collections. The government's fiscal year ends on Sept. 30. Based on those results, tariffs have now grown into the fourth-largest revenue source for the federal government, behind individual withheld receipts at $2.683 trillion for the fiscal year, non-withheld individual receipts at $965 billion and corporate taxes at $392 billion. In the space of roughly four months, tariffs as a share of federal revenue have more than doubled to around 5% from about 2% historically. Treasury Secretary Scott Bessent had told a cabinet meeting that calendar-year 2025 collections could grow to $300 billion by the end of December. At the June run rate, gross customs collections would hit $276.5 billion in six months' time, which means reaching Bessent's target would require some increases. Ernie Tedeschi, economics director of the Budget Lab at Yale University, had told Reuters it may take more time for the tariff revenue to fully ramp up because businesses and consumers have sought to front run the duties by buying ahead. Live Events The numbers are likely to reinforce Trump's view of tariffs as a lucrative revenue source and as a hammer to enforce non-trade foreign policy. He had said that "the big money" would start to flow in after he imposes higher "reciprocal" tariffs on US trading partners on August 1. Now that he has slapped dozens of countries with new tariffs which will be applicable from August 7, the question is who is paying for these tariffs. Also Read | How Moscow might respond if Trump stops Russian oil to India Who pays Trump's tariffs? A tariff is essentially a tax imposed by a government on imported goods. The intended goals of tariffs can vary — from protecting domestic industries to generating revenue or exerting economic pressure on other countries. When the United States imposes a tariff, the tax is not charged to a foreign government or exporter directly. Instead, it is levied on goods as they enter the country, at the point of importation. The party responsible for paying the tariff is the American company that imports the product. For example, if a U.S. electronics retailer imports computer components from China, the company pays the tariff when the goods arrive at a U.S. port. This payment is made to U.S. Customs and Border Protection and goes directly into the federal treasury. The foreign exporter has no legal obligation to pay this tax, nor is it charged at the point of export. This reality stands in direct contradiction to President Trump's frequent assertion that China or other foreign countries are paying the tariffs. Also Read: Trump's tariffs are set to hurt US more than India, SBI Research notes Although the importer is the one who pays the tariff upfront, the economic impact does not stop there. Tariffs act like a cost increase in the supply chain. American importers must decide how to absorb this new cost. In some cases, they may try to pressure foreign suppliers to lower their prices to offset the tariff, and occasionally, exporters will agree to partial discounts to maintain market access. However, this is not guaranteed and depends heavily on the competitiveness of the market and the elasticity of demand. More often, the increased costs are passed downstream. Importers may raise prices for wholesalers and distributors, who in turn pass the costs along to retailers. Ultimately, it is American consumers who feel the impact in the form of higher prices on everyday goods — from clothing and electronics to household appliances and even groceries. Alternatively, companies may try to absorb the tariffs by accepting lower profit margins, cutting investments, or reducing wages and employment. A 2019 study conducted by economists at Columbia University, Princeton University, and the Federal Reserve Bank of New York found that American consumers and companies were paying nearly the full cost of Trump's tariffs. The more the United States imports from countries affected by tariffs, the more revenue the federal government collects — but it is US companies and consumers who are funding that revenue stream. The idea that foreign governments are directly transferring money to the US Treasury is not only inaccurate, it misrepresents how tariffs function in the global trading system. Also Read | Trump frustrated with India talks, will detail additional penalty soon, adviser says If Americans pay the tariffs, why are other countries scared? Even if American importers technically pay all the tariff (though in many cases exporters have to pay it fully or partially), the foreign exporter feels the impact because tariffs make their products more expensive and less competitive in the US market. When a US buyer faces higher costs due to a tariff, they might buy less of that product, switch to a domestic alternative, or find a different foreign supplier not subject to tariffs. This means exporters in other countries might lose sales, market share and revenue. Over time, this can seriously hurt their industries, especially if they rely heavily on US demand. Tariffs also inject instability into global supply chains. Exporters and manufacturers in other countries often operate on long-term contracts, with complex logistics and investment cycles. If the US, the world's largest consumer market, suddenly slaps a tariff on one of their key products, it creates uncertainty. This uncertainty can delay foreign companies' investment decisions and cause layoffs or shifts in production. It can push firms to relocate operations to tariff-free countries which costs time and money. Sudden tariffs can also undermine long-term business relationships of exporters with US companies. In international trade, who pays a tariff and who suffers from it are not always the same. The strategic value of tariffs often lies in their indirect consequences, not just the customs duty collections at the border.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store