Sri Lanka's garments sector is pinning its hopes on further discussions with the U.S. government after Donald Trump's administration's 30% tariff on the nation has placed it at a disadvantage to some of its biggest rivals.

The impact is expected to be sharper for Sri Lanka, where 21 percent—or $618 million—of its $2.98 billion exports to the US in 2023 could now face Indian competition.

The new tariff rates threatened in the letters Trump shared Wednesday are similar to those he announced on what the White House dubbed “Liberation Day” in early April.