US Imposes 12.5% Tariff on Nigerian Exports Over Forced Labour Concerns
- The United States announced a 12.5% tariff on most Nigerian exports following a Section 301 investigation by the USTR into forced labour practices
- Nigeria was placed in a higher tariff bracket than countries that have already adopted or committed to banning imports made with forced labour
- The USTR consulted over 45 governments and received more than 1,600 submissions before announcing tariffs on 60 economies
The United States has placed a 12.5% tariff on most imports from Nigeria after the Office of the United States Trade Representative (USTR) found that the country had not adopted or meaningfully enforced a ban on goods produced with forced labour.
The USTR announced the measure as part of a broader trade action covering 60 economies, following a Section 301 investigation under the Trade Act.
Source: Twitter
The probe, launched in March 2026, examined whether key US trading partners had failed to prohibit goods linked to forced labour, which the agency described as creating an unfair burden on American commerce.
Before reaching its decision, the USTR received more than 1,600 written submissions, heard testimony from over 100 witnesses during public hearings, and held consultations with more than 45 governments.
Nigeria Placed in Higher Tariff Bracket
The new framework creates two tariff tiers. Countries that have enacted or pledged to enact bans on forced-labour imports will face a 10% tariff. Nigeria, which has not introduced such measures, falls into the higher category at 12.5%.
Countries qualifying for the lower rate include India, Indonesia, Malaysia, Mexico, Pakistan, Canada, Bangladesh, Cambodia, Argentina and the United Kingdom, Punch reports.
A Federal Register notice confirmed that Nigerian products will attract the 12.5% rate, with certain exemptions carved out for raw materials that could create supply shortages in the US, goods unavailable in sufficient quantities from domestic or alternative sources, and products whose tariffs could broadly disrupt the American economy.
Why the US Took This Step
The action follows President Donald Trump invoking Section 122 of the Trade Act of 1974 after the US Supreme Court blocked his administration's earlier tariff programme introduced under the International Emergency Economic Powers Act.
Leadership reports US Trade Representative Jamieson Greer said the tariffs are designed to push trading partners into strengthening their legal frameworks against forced labour.
Greer said:
"President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains.
"The United States has had a forced labour import ban for nearly a century. It's well past time for our trading partners to do the same."
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Nigeria has constitutional protections and anti-legislation that prohibit forced and compulsory labour, but enforcement has continued to attract concern in international assessments.
The 12.5% tariff is expected to raise costs for Nigerian exporters selling into the American market. The full scale of the impact will depend largely on which specific products fall under the exemptions set out in the USTR's annexes.
Nigeria export more than import in Q1, 2026
Earlier, Legit.ng reported that the NBS has revealed that Nigeria recorded a trade surplus of N7.55 trillion in the first quarter of 2026, owing to increased exports exceeding imports in the period.
The NBS, in its report titled "Foreign Trade Statistics Q1 2026," indicates that Nigeria's total trade volume reached N34.79 trillion during January and March 2026, driven by rising export receipts and a decrease in import value.
Source: Legit.ng
