US Imposes 12.5% Tariff on Nigerian Exports Over Forced Labour

Nigeria has been included among 38 countries affected by a new United States trade policy imposing a 12.5% tariff on selected exports, as Washington intensifies efforts to tackle forced labour and what it describes as unfair global trade practices.

The revised tariff framework was announced by the Office of the United States Trade Representative (USTR) in a statement issued on July 23 by U.S. Trade Representative Jamieson Greer. The new duties, ranging from 10% to 12.5%, replace temporary tariffs introduced earlier this year as part of a broader review of U.S. trade policy.

Key Highlights

• United States imposes a 12.5% tariff on selected Nigerian exports.
• Policy targets countries over forced labour concerns and trade imbalances.
• Crude oil, natural gas, fertiliser and selected food products are exempt.
• New tariff regime takes effect immediately, replacing temporary measures introduced earlier this year.
• Nigeria joins China, Brazil, South Africa, Saudi Arabia and 34 other countries under the higher tariff category.

Under the new schedule, Nigeria joins countries including China, Brazil, South Africa, Egypt, Morocco, Saudi Arabia, the United Arab Emirates, Vietnam and Venezuela in attracting the higher 12.5% tariff. Other trading partners, including the United Kingdom, Canada, India, Mexico, Malaysia and Pakistan, will face a lower 10% import duty.

According to the USTR, the decision followed extensive investigations involving public hearings, thousands of public submissions and consultations with trading partners to address concerns surrounding forced labour, supply chain integrity and persistent trade imbalances.

The new tariffs, which took effect from 12:01 a.m. EDT on Friday, will apply to approximately 99.4% of U.S. imports. However, crude oil, natural gas, fertiliser and certain agricultural products have been exempted from the policy. Goods already in transit before implementation will also remain exempt until July 28.

The latest action follows a U.S. Supreme Court ruling earlier this year that invalidated President Donald Trump’s previous reciprocal tariffs imposed under emergency powers. In response, the administration introduced a temporary 10% tariff while developing a new framework under Section 301 of the U.S. Trade Act of 1974, a legal mechanism widely considered more resilient to judicial challenges.

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Defending the policy, Greer said the United States has maintained restrictions on goods produced through forced labour for decades and urged other countries to adopt similar standards.

“The United States has had a forced labour import ban for nearly a century, and rigorously enforces it. It’s well past time for our trading partners to do the same,” he said.

The tariff regime forms part of Washington’s broader strategy to reshape global trade relationships while increasing pressure on countries it considers to have unresolved trade concerns.

Nigeria’s inclusion comes a year after the Trump administration imposed an additional 10% tariff on Nigerian goods, citing the country’s growing engagement with BRICS, the bloc of emerging economies comprising Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, Indonesia and Iran.

Although the 12.5% tariff on Nigerian exports exceeds the rate imposed on several other U.S. trading partners, analysts note that its overall impact will depend on the specific export categories affected, with exempt commodities expected to continue entering the U.S. market without additional duties.