Sri Lanka, June 5 -- Sri Lanka's garment industry is staring down a harsh new tariff reality in the United States, and the country's slow diplomatic response may have made things significantly worse.

Washington has proposed new duties of up to 12.5% on imports from 60 economies accused of failing to ban goods made with forced labour. Sri Lanka has landed in the highest bracket, with no relief for apparel, its single biggest export to America.

Felix Fernando, Chairman of the Joint Apparel Association Forum, says the warning signs were visible months ago. "The US notified, and they have written to all these sixty countries saying that they want to have a mechanism they have to make sure that all the labour standards are met, especially wi...