### 📈 US Global Tariff Hike to 15%: Impact on Sri Lankan Exports

Following a US Supreme Court ruling, President Trump has announced an increase in the universal import tariff from 10% to 15%. This move, effective immediately, utilizes "Section 122" powers for a 150-day period. Key Trade Developments: • Global Tariff Rate: Raised to the legal maximum of 15%, up from the 10% rate proposed just 24 hours prior. • Legal Basis: The shift follows a court ruling that found previous higher tariffs under "economic emergency" laws exceeded presidential authority. • Duration: The 15% rate is valid for 150 days; extending it requires approval from the US Congress. Implications for Sri Lanka & Regional Trade: • Apparel & Textiles: As the US is a primary market for Sri Lankan apparel, a 15% across-the-board tariff adds significant cost pressure to exports, potentially affecting competitiveness against nations with specific trade deals. • Exemptions: The White House noted exemptions for critical minerals, metals, and energy products, which may offer limited relief to specific industrial niches. • Regional Benchmarks: Neighbors like Malaysia and Cambodia remain at negotiated rates of 19%, while countries without deals (like Brazil) may see rates drop from 40% to the 15% cap temporarily. Market Outlook: • Uncertainty remains high as the US administration explores investigations into "unfair trade practices" to impose further product-specific taxes. • Political opposition in the US and global pushback (notably from Germany and France) suggest a volatile trade environment for South Asian exporters in the coming months.