Sri Lanka, April 4 -- Sri Lanka's apparel sector, the country's largest export industry, is bracing for a major setback after the United States announced steep tariff hikes on imports, a move, which according to the industry, could erode competitiveness.

The local apparel industry yesterday raised alarm over the potential fallout from the United States' new Reciprocal Tariff policy, warning it could significantly disrupt the sector and put thousands of jobs at risk.

US President Donald Trump announced a 10 percent baseline tariff on all imports that will take effect from April 5, increasing to a 44 percent 'reciprocal' tariff on Sri Lankan exports, starting April 9.

"This tariff level is extremely high relative to our regional competit...