NextFin news, Hundreds of apparel industry workers in Sri Lanka took to the streets on Saturday in Colombo to protest against the new trade tariffs imposed on the country by US President Donald Trump, according to a report by The Week citing PTI.
The protest was triggered by the US trade tariff on Sri Lankan garment exports being set at 20 percent, reduced from an earlier 44 percent following negotiations with the US trade department. Workers and union members expressed concern that the tariff hike would increase export costs, shrink orders, and potentially force factory closures.
Anton Marcus, a trade union leader, stated, "The new tariff would make the Sri Lankan garment exports to the US more expensive, the orders will shrink and the factories will have to be closed down." He warned that approximately 16,000 jobs in the apparel export sector are at risk due to the higher tariff.
Members of the free trade zone unions also reported that all fringe benefits, including uniforms, annual excursions, sports festivals, and end-of-year receptions, have been stopped amid the tariff changes.
In August, the Sri Lankan government had said the new 20 percent tariff rate placed the country on par with key competitors in the garment export industry such as Bangladesh and Vietnam. However, the export industry continues to urge for a tariff lower than 20 percent to remain competitive in the global market.
Sri Lanka's annual export volume, primarily garments and rubber goods, amounts to approximately 3 billion US dollars, while imports from the US stand at about 3 million US dollars.
The protest in Colombo on Saturday reflects the growing tensions in the apparel sector over trade policies affecting Sri Lanka's export economy.
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