South Asia Trade Alert: SL Projected to Face Export Losses Amid Global Tariff Turmoil 📈

• A joint statement by South Asian economists warns that the world trading system is in turmoil following the new US tariffs announced since April 2025. • Average US tariffs on global imports reached 17.4% in September 2025—the highest level since 1935—fueling a five-fold increase in the World Uncertainty Index over one year. • Impact on Sri Lanka: The CSEP-Trade Sentinel Tariff Impact Tool projects that Sri Lanka and Bangladesh will face export losses due to the new US tariff structure. • India is projected to suffer significantly (combined 50% tariff), while Nepal and Pakistan show modest gains. • South Asia’s policymakers are urged to focus on medium-to long-term interests and take four key actions: • Use the crisis as an opportunity for domestic reform, including reducing high trade protection where South Asian countries are currently outliers. • Exercise economic pragmatism by urgently increasing regional trade, as serious bilateral or regional dialogues are currently absent, despite the widening gap between actual and potential trade. • Pivot to Asia to tap into East Asia’s dynamic supply chains and $9 Trillion import market. • Push to strengthen multilateral forums, particularly the WTO, which provides a voice for small states.