US SLAPS 12.5% TARIFF ON NIGERIAN IMPORTS OVER FORCED LABOUR TRADE RULES
The United States has imposed a 12.5 per cent tariff on imports from Nigeria, citing the country’s failure to adopt and enforce a ban on the importation of goods produced with forced labour.
The measure forms part of a broader trade action targeting 60 economies that Washington says have not established effective safeguards against forced labour in global supply chains.
The decision was announced by the Office of the United States Trade Representative (USTR) on Thursday following investigations conducted under Section 301 of the U.S. Trade Act.
Under the new policy, Nigeria joins a group of countries facing the higher 12.5 per cent tariff, while nations including India, Indonesia, Malaysia, Mexico and the United Kingdom will be subject to a lower 10 per cent rate after implementing—or committing to implement—restrictions on imports linked to forced labour.
The USTR launched the investigations in May 2026, covering 60 of America’s largest trading partners. According to the agency, the review involved more than 1,600 written submissions, testimony from over 100 witnesses, and consultations with more than 45 governments before the final decision was reached.
The agency said countries that already enforce forced labour import prohibitions, or have formally committed to doing so through reciprocal trade agreements, qualify for the reduced 10 per cent tariff.
Among those listed are Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
For all other countries covered by the investigation, including Nigeria, the USTR determined that a 12.5 per cent tariff was appropriate.
A Federal Register notice issued by the agency confirmed that the new tariff would apply to Nigerian products, except for goods specifically exempted under Annexes I and II of the order.
The notice stated that the decision followed a review of public comments, witness testimony, recommendations from the Section 301 Committee and advisory committees, as well as directives from President Donald Trump.
According to the USTR, the tariff is intended to encourage Nigeria to eliminate policies and practices considered inconsistent with efforts to prevent forced labour in international trade.
The latest action comes after President Trump invoked Section 122 of the Trade Act of 1974 to introduce temporary universal import tariffs following a U.S. Supreme Court ruling that blocked his administration’s broader tariff framework under the International Emergency Economic Powers Act (IEEPA).
U.S. Trade Representative Jamieson Greer said the measure reflects Washington’s determination to strengthen global action against forced labour.
“President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains. The United States has maintained a forced labour import ban for nearly a century. It is well past time for our trading partners to adopt similar measures,” Greer said.
The USTR noted that the tariffs will not apply to certain exempted products, including raw materials whose restriction could create domestic shortages, goods likely to disrupt the U.S. economy, products unavailable in sufficient quantities from domestic or alternative sources, and selected imports from countries that have adopted or pledged to implement forced labour import bans.
Additional exemptions, the agency said, were granted where tariffs were considered unlikely to address the trade practices identified during the investigation.
The new tariffs are expected to affect a range of Nigerian exports to the United States, although the full impact will depend on the categories of products covered and the exemptions available under the policy.
Culled from Global Financial Digest