Nigeria, 59 other economies face new 12.5% US tariff threat

Nigeria and 59 other economies face the prospect of new 12.5% U.S. tariffs due to alleged failures in implementing and enforcing bans on goods produced with forced labor. The U.S. Trade Representative's office announced Tuesday that investigations under Section 301 of the U.S. Trade Act of 1974 found these economies' inaction to be unreasonable and detrimental to U.S. commerce.

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The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an uneven playing field.

If approved after a public consultation period, the proposed penalty would be added to the existing 10% baseline tariff, potentially increasing the overall U.S. tariff on exports from affected nations, including Nigeria, to 27.5%. U.S. Trade Representative Ambassador Jamieson Greer emphasized the unacceptability of this situation, stating, "The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an uneven playing field."

According to the USTR report, Nigeria is among 54 economies that have neither imposed nor effectively enforced prohibitions on goods made with forced labor. Other African nations on the list include Algeria, Angola, Egypt, Libya, Morocco, and South Africa. The report argues that the absence of effective import restrictions in these countries undermines global efforts to eradicate forced labor and provides unfair market advantages to companies exploiting such practices.

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We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labour goods, including through the USMCA and commitments in Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labour globally.

The U.S. investigation identified a wide range of major trading partners across Asia, Europe, the Middle East, and the Americas as being affected. Beyond Africa, countries such as China, India, Japan, South Korea, the United Kingdom, and Brazil are named. Additionally, six economies, Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan, were found to have existing prohibitions but failed to enforce them effectively. The USTR contends that this failure distorts global competition by allowing firms using forced labor to produce goods at lower costs, disadvantaging businesses that adhere to ethical labor practices.

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The absence of effective import restrictions in these countries undermines global efforts to eliminate forced labour and creates unfair market advantages for firms benefiting from exploitative labour practices.