• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Morningstar on SanDisk’s 2,107% Year

September 11, 2026

AI, Robotics and the Coming Economic, Military, and Political Revolutions

September 11, 2026

British MPs Vote AGAINST Assisted Suicide Bill in Victory for Life (VIDEOS) * The Gateway Pundit * by Paul Serran

September 11, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, September 11
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    British MPs Vote AGAINST Assisted Suicide Bill in Victory for Life (VIDEOS) * The Gateway Pundit * by Paul Serran

    September 11, 2026

    The US President Announced a $5,000 Bonus to All Working Americans – Here’s How It Works (VIDEO) * The Gateway Pundit * by Jim Hoft

    September 11, 2026

    The Obamas Lead As Trump Blows Off New York On 9/11 To Go To A Golf Tournament

    September 11, 2026

    Dallas Mayor Eric Johnson Tells GOP Midterm Convention Audience Why He Flipped From Democrat to Republican (VIDEO)

    September 11, 2026

    ‘Democrats Are the Party of Hatred’ (VIDEO) * The Gateway Pundit * by Mike LaChance

    September 11, 2026
  • Health

    Cyclospora outbreak: U.S. officials declare end; origin still unknown

    September 11, 2026

    $500 Obamacare, platinum chemo, ADA boycott: Morning Rounds

    September 11, 2026

    New ‘Queen of Hearts’ AI aims to detect hidden-blockage heart attacks

    September 11, 2026

    Lifesaving childhood chemotherapy raises risk of cancer later in life

    September 10, 2026

    How UK CBD Rules Differ From Canada’s Market

    September 10, 2026
  • World

    Oil Crosses Over $101 A Barrel, Highest Since May

    September 11, 2026

    Elon Musk’s Ex Shares Vile Thing He Calls His 14 Kids’ Mothers

    September 11, 2026

    Iran Blames ‘Zionist-American Kurdish Separatists’ for Murder of Sunni Cleric

    September 11, 2026

    Trump’s Eye-Popping Convention Boast Runs Straight Into A Wall Of Receipts

    September 11, 2026

    China Rants After Marco Rubio Questions Communist Regime Projects in Peru

    September 11, 2026
  • Business

    ATF Rule Could Cause Classic Showdown Between Mom And Pop Shops Versus Online Retailers

    July 10, 2026

    Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers)

    July 9, 2026

    The Agency Elizabeth Warren Built Now Advances Trump’s Agenda

    July 9, 2026

    Meta To Shell Out Billions For New AI Data Center Outside US

    July 9, 2026

    How Big Banks Are Scheming To Jack Up Your Fees

    July 8, 2026
  • Finance

    Morningstar on SanDisk’s 2,107% Year

    September 11, 2026

    AI, Robotics and the Coming Economic, Military, and Political Revolutions

    September 11, 2026

    Which Technology Stock Is a Better Buy in 2026?

    September 11, 2026

    Bitcoin falls below $77,000 with key inflation data on deck

    September 11, 2026

    Gold opens at lowest level in over a month ahead of CPI data

    September 11, 2026
  • Tech

    FBI Detects Argentina Teenager Using ChatGPT to Plan School Shooting

    September 11, 2026

    China Pushes Back Against American Allegations of ‘Malicious’ AI Theft

    September 11, 2026

    BOKHARI: Anthropic’s Self-Serving Doomsday Narrative

    September 11, 2026

    Mark Zuckerberg’s AI Golden Child Walks Away from Meta

    September 11, 2026

    Gavin Newsom Signs California AI Safety Bills Backed by OpenAI, Anthropic

    September 11, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»Sri Lanka’s Tariff Concession May Carry a Diplomatic Cost With China
Finance

Sri Lanka’s Tariff Concession May Carry a Diplomatic Cost With China

July 28, 2026No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Sri Lanka’s Tariff Concession May Carry a Diplomatic Cost With China
Share
Facebook Twitter LinkedIn Pinterest Email

Imagine that you have two powerful friends you cannot afford to lose. One of them often threatens to punish you unless you publicly denounce the other for something you know the other didn’t do. But you comply because you depend on that friend. But now the other friend is watching, and you’re left hoping they will still take your calls.

This is the position Sri Lanka often finds itself in with regard to the United States and China.

In early July, Sri Lanka issued a gazette to ban the import of goods produced using forced labor. The gazette says that the government has imposed a blanket ban on importing any goods that were made, mined, or produced, wholly or even partially, using forced labor.

The government will also publish a list of high-risk goods, companies, and countries, as per findings of the International Labor Organization (ILO). If an importer brings in products from one of those flagged sources, they have to provide evidence that the goods were not made using forced labor. The Director General of Customs will enforce this directive.

On paper, this looks like a worthy initiative; no one supports forced labor. But in practice, this was the United States making Sri Lanka take part in a game it doesn’t want to play. In June, Washington announced that countries that fail to prohibit “forced labor imports” would face heavy tariffs. Sri Lanka sends a quarter of its exports to the American market, and could not afford to be placed in the punishment bracket.

By adopting the ban, Sri Lanka secured the lower 10 percent tariff rate. Sri Lanka is among 17 economies (also including Canada, India, Mexico, and the U.K.) that were taxed 10 percent because they have “made commitments to adopt, and effectively enforce, forced labor import prohibitions.” A 12.5 percent rate was applied to countries that have, according to Washington, failed to adopt a formal forced-labor import prohibition.

See also  China Evergrande seeks Chapter 15 protection in Manhattan bankruptcy court

Sri Lankan businesses and politicians have reacted positively to the 10 percent tariff as they believe it puts them in an equal or better position than their key competitors. The Joint Apparel Association Forum (JAAF), which represents the apparel industry in the country, said that the industry is competitive and even a narrow percentage point difference in tariffs could mean the “difference between winning and losing an order to a rival sourcing destination.” This was a sentiment shared by the Exporters Association of Sri Lanka (EASL) and former minister of finance, as well as foreign affairs, Ravi Karunanayake.

While Sri Lanka was only subjected to an additional duty of 10 percent, there was uncertainty between the announcement of possible tariffs in early June and the date that tariffs were announced — a period of almost two months. Sources from the apparel sector told The Diplomat that there were serious concerns about lost orders and job losses during those two months.

As Karunanayake pointed out, there is no evidence to suggest that Sri Lanka imports anything from destinations that use forced labor. Trump has used tariffs as a cornerstone of his foreign policy and uses them to negotiate trade deals around the globe. Countries like Sri Lanka that depend heavily on exports to the United States are especially vulnerable to such moves.

The U.S. consumes almost 25 percent of Sri Lankan exports. The apparel and textile sector, which is Sri Lanka’s top merchandise export, depends heavily on the U.S. market and, to a lesser degree, the EU. In 2025, the revenue from apparel and textiles was $4.9 billion. Exports to the U.S., the EU, and the U.K. were $1.96 billion, $1.6 billion, and $688 million, respectively. Therefore, Sri Lanka has to adopt an attitude of deference to the U.S. and carries out performative actions, such as issuing gazettes banning the import of goods produced using forced labor.

See also  Moderna Stock: Is MRNA Stock A Buy As It Doubles Down On Cancer Vaccine Efforts?

But what does the U.S. mean by goods made using forced labor? In the past few decades, China has become the leading trade partner of almost all countries and the U.S. has been using tariffs to dissuade the world from trading with China. Its not surprising that Washington has singled out China as a country that uses forced labor, which it alleges gives China an unfair advantage over the United States.

The Sri Lankan apparel sector imports many inputs from China. The United States Trade Representative (USTR) insists that cotton grown in Xinjiang is picked using coerced minority labor. A few years ago, the BBC stated that close to half a million workers were coerced into picking cotton in Xinjiang. This often-repeated cotton-picking headline is at odds with the data.

In the 1980s and the 1990s, China relied heavily on its vast and educated workforce to produce goods cheaply. But that has not been the case for at least 10-15 years. Chinese labor is no longer cheap. It is also a highly mechanized country. In 2024, 542,000 industrial robots were installed worldwide, with China deploying 54 percent of them. A 2023 United Nations Food and Agriculture Organization (FAO) report said that even in 2019, the “overall mechanization level of crop production and harvesting in China exceeded 70 percent.”

Xinjiang is no exception to mechanization. Data from China shows that over 90 percent of Xinjiang’s cotton was machine-picked, up from 5 percent in 1990. The overall mechanization in cotton farming has exceeded 97 percent in 2025. Given these trends, it’s highly unlikely that it is China’s “forced labor” that makes the U.S. uncompetitive.

See also  U.S. and Canada Must Unite to Confront China

To avoid higher U.S. tariffs, Sri Lanka is having to act as if allegations of forced labor against China are credible, even though the data shows that China’s cotton fields are now overwhelmingly worked by machines, not hands.

The theater Sri Lanka needs to do to stay in Washington’s good graces, however, can signal to Beijing that Colombo is willing to lend legitimacy to a contested narrative. For a country deeply tied to China through trade, investment, and debt, that is a dangerous signal to send.

Carry China concession Cost Diplomatic Lankas Sri Tariff
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Morningstar on SanDisk’s 2,107% Year

September 11, 2026

AI, Robotics and the Coming Economic, Military, and Political Revolutions

September 11, 2026

Which Technology Stock Is a Better Buy in 2026?

September 11, 2026

China Pushes Back Against American Allegations of ‘Malicious’ AI Theft

September 11, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Golf Influencer Paige Spiranac Takes Heat for Hot Shot of Barely-There Skirt

November 14, 2023

U.S. online sales to grow 4.8% in crucial holiday season, report says

October 6, 2023

At The GOP Presidential Debate, Candidates Must Address Healthcare

September 15, 2023

Australia office vacancies edge up to highest level since 1990s

August 3, 2023
Don't Miss

Morningstar on SanDisk’s 2,107% Year

Finance September 11, 2026

Quick Read SanDisk’s 2,107% one-year surge made Apple and Microsoft screen as value stocks, Morningstar’s…

AI, Robotics and the Coming Economic, Military, and Political Revolutions

September 11, 2026

British MPs Vote AGAINST Assisted Suicide Bill in Victory for Life (VIDEOS) * The Gateway Pundit * by Paul Serran

September 11, 2026

Salman Rushdie to Receive a National Book Award Medal for Lifetime Achievement

September 11, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,399)
  • Entertainment (6,793)
  • Finance (4,946)
  • Health (2,861)
  • Lifestyle (1,931)
  • Politics (4,563)
  • Sports (5,251)
  • Tech (2,658)
  • Uncategorized (4)
  • World (6,996)
Our Picks

‘Transformers’ cartoon bashed on social media for pushing transgender agenda with non-binary robot alien: ‘This is DISGUSTING!’

May 12, 2023

Wall Street endorsed Jensen Huang’s ‘big concept’ for AI. What now?

August 11, 2026

Nate Bargatze’s Dimwit Dad Feature Film ‘The Breadwinner’ Killed by Critics, Bombs at Box Office

June 1, 2026
Popular Posts

Morningstar on SanDisk’s 2,107% Year

September 11, 2026

AI, Robotics and the Coming Economic, Military, and Political Revolutions

September 11, 2026

British MPs Vote AGAINST Assisted Suicide Bill in Victory for Life (VIDEOS) * The Gateway Pundit * by Paul Serran

September 11, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.