Sri Lanka, April 11 -- When U.S. President Donald Trump announced his sweeping "Liberation Day" tariffs, the world economy braced for seismic aftershocks. In a bold and controversial return to economic nationalism, Trump invoked the International Emergency Economic Powers Act of 1977 to impose a baseline 10% duty on all imports, with significantly higher tariffs on nations with which the U.S. maintains the largest trade imbalances. Sri Lanka, already reeling from its 2022 economic collapse, has been hit with a staggering 44% tariff on its exports to the U.S.-one of the highest rates announced-posing a near-existential threat to its export economy, especially the vital apparel industry.

A Global Shockwave with Local Fallout

The policy's ...