Trump's tariffs badly impact women workers in Sri Lanka
One million jobs are at risk if the 44 per cent tariff is imposed after the 90-day pause. The apparel industry is one of the most vulnerable. According to experts, the tariffs will lead to a 20 per cent drop in exports to the US, with an annual loss of about US$ 300 million.
Colombo (AsiaNews) – About a million women workers in key export sectors will lose their job and income if the 44 per cent tariffs imposed by US President Donald Trump come into force at the end of the 90-day pause.
Sri Lanka's main export industries such as apparel, tea, gems, rubber and cinnamon, which employ mostly women, will be the most affected by the new tariffs since the US market is one of their most lucrative.
Apparel workers reproach the government for its “lethargic attitude" and failure to consider the concerns of workers and unions, not least because their representatives were not asked to participate in the discussions on tariffs.
The apparel industry accounts for about 40 per cent of the country's total exports, and is crucial for its economy. It also employs mainly women from low-income backgrounds in rural areas, for whom these jobs represent a crucial pathway out of poverty.
Since most apparel workers are also breadwinners, their wages help extended family networks in economically disadvantaged regions.
“The Women’s Centre collaborated with 25 other women’s organisations to carry out our campaign against the US tariffs hindering women workers,” said its executive director, Padmini Weerasuriya.
If the tariffs go into effect, “Their take-home pay will decrease significantly,” she added. “As orders dip and approximately six million dependents will also be severely impacted.”
“These women need job security as factories are already discussing about possible layoffs of workers, since demand is likely to drop.”
Compared to India and Bangladesh, she warns, Sri Lankan women face greater competition since “the tariffs imposed on Sri Lanka are higher”. That is why several manufacturers are already moving their operations to Vietnam, Bangladesh and Africa.
If plants shut down, more than 350,000 women working will be impacted. AsiaNews met three of them, 33-year-old Subadra Aponsu, 31-year-old Hemamamli Akaravita and 30-year-old Sandamini Tissera who spoke about their difficulties.
“We are the breadwinners of our families as our parents are elderly and sick. Our siblings are married and they are unable to provide for our parents. During the past several years, we have been working hard and providing for our families. If we lose our jobs, we have no option but to mortgage our homes,” they explained.
“During the economic crisis, we had to sell our paddy fields. Currently, our employers are planning to leave the country. We may lose our jobs shortly. We are unable to find employment elsewhere as almost every apparel manufacturer is planning to sell their business. In our boarding house, several women have already lost their jobs.”
According to economic analysts Sampath Amarasinghe and Niroshini Caldera, “due to the new tariffs, there will be significant decline in export volumes with a severe erosion of Sri Lankan goods’ competitiveness in US markets.” All this, they warn, could result in "many Sri Lankan products ending up out of reach for US consumers and businesses.”
The greatest risk concerns “price- and cost-sensitive categories like garments, where profit margins are already low and competition from other countries is intense.”
The new tariff will see exports to the United States drop by 20 per cent, with an annual loss of about US$ 300 million in foreign currency earnings.
As Sri Lanka's total exports of goods in 2024 reached US$ 13 billion, the experts conclude, this represents “a major blow to the country’s balance of trade” and “economic growth prospects”.
Meanwhile, several women's groups started a petition last week in the Katunayake Free Trade Zone (the first and largest of the country's eight FTZs).
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