US Lowers Tariffs: 20% for Sri Lanka, 10% for Australia

This is a developing story brought to you by Aus News Lanka, your trusted source for news for Sri Lankans in Australia and beyond.

Australia has dodged another round of US import tax increases after the White House released its latest tariff list — and we weren’t on it.

Former President Donald Trump had hinted at raising the 10% baseline tariff on all countries, but the updated list confirmed Australia’s rate will stay put at 10%, the same as it’s been since April.

“This is a vindication for the Albanese government,” Trade Minister Don Farrell said. “It means our wine, beef, lamb, and wheat are still relatively cheaper in the US market. We’ll be helping our exporters take full advantage of this.”

While Australia held steady, Sri Lanka also had something to celebrate. After months of talks with US trade officials, the US has agreed to cut Sri Lanka’s tariff rate from 30% down to 20%, effective August 7, 2025.

Sri Lanka now sits alongside regional competitors like Vietnam (20%) and Bangladesh (20%), with India at 25%. A few countries, including Pakistan (19%) and Indonesia (19%), managed to score slightly better rates.

But there’s a catch — the new deal comes with tough anti-transshipment rules. Any goods caught being rerouted to dodge tariffs will face a hefty 40% penalty. That means Sri Lanka’s apparel exporters, many of whom send products via third countries, will need to be extra careful about complying with US customs checks.

For both Australia and Sri Lanka, the message is clear: the playing field just got a little better, but the game’s still very competitive.

More updates to come on AusNewsLanka.