Sri Lanka’s Central Bank is closely monitoring the key policy changes in the U.S. under President Donald Trump’s second term including possible tariff hikes, but major downside impacts are unlikely, a senior official said.
President Trump has said he would impose reciprocity soon on every country that charges duties on U.S. imports, in a move that ratchets up fears of a widening global trade war and threatens to accelerate U.S. inflation.
The European Commission has said it would react “firmly and immediately” against tariff increases resulting from President Trump’s proposed “reciprocal” trade policy, which it had labelled unjustified and a step in the wrong direction, international media have reported.