Since buyers are already re-examining their global supply chains and moving orders, governments like Sri Lanka would benefit from the US placing fresh tariffs on a number of other countries.
According to Suren Fernando, CEO of MAS Holdings, the company is now getting enquiries from US buyers who are re-examining their worldwide supply chains and are expecting to partially move their purchases to nations like Sri Lanka.
US consumers will pay more and brands from these nations will become more expensive as a result of the US raising tariffs on nations like China, Mexico, and Canada. As a result, shoppers are likely to shop elsewhere.
Fernando clarified that these new decisions are anticipated to cause significant trade volatility, with Sri Lanka ideally benefitting.
MAS already has design and logistics facilities in the United States, which allows them to provide better customer service by being close to the consumer. But, they pointed out, they don’t currently have any intentions to expand there.
He pointed out that although Sri Lanka cannot match the massive output of Vietnam and Bangladesh, they must improve their “value premium” to make sure Sri Lanka stands out from the competition.
It was observed that MAS is concentrating more on resilience to strengthen the company and maintain its financial lead than on topline growth.
Fernando noted that Sri Lanka can use more expensive textiles to create more elaborate swimwear, lingerie, sportswear, and leisure clothing.
According to him, the industry will significantly improve as a result of the nation’s goal of reaching US $ 5-8 billion in revenue within the next three years.
Fernando noted that suppliers in nations like Sri Lanka thought a trade barrier may emerge when US officials revealed at the end of last year that adjustments would affect goods coming from Mexico that are sent duty-free to the US.
