Nigeria faces 27.5% US tariff over forced labour rule

Nigeria has been identified among 60 economies targeted by the United States for potentially facing new tariffs over alleged failures to enforce bans on goods produced with forced labor. The U.S. Trade Representative's office concluded investigations under Section 301 of the U.S. Trade Act of 1974, finding that these economies unreasonably burdened U.S. commerce by not prohibiting and effectively policing the importation of such goods.

As a result, the USTR has proposed additional duties on products from these economies, including Nigeria. If these proposed tariffs are approved after a public consultation process, they would be added to the existing 10% baseline tariff, potentially raising the total U.S. tariff on Nigerian exports to 27.5%. U.S. Trade Representative Amb. Jamieson Greer stated, "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."

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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.

The USTR report indicates that Nigeria, along with 53 other economies, failed to both impose and effectively enforce prohibitions on the importation of goods produced with forced labor. The agency argues that the absence of such restrictions undermines global efforts to eliminate forced labor and provides unfair market advantages to companies benefiting from exploitative practices. Several other African nations, including Algeria, Angola, Egypt, Libya, Morocco, and South Africa, are also on the list.

The proposed tariffs affect a wide range of major U.S. trading partners globally, including countries in Asia, Europe, the Middle East, and the Americas. The USTR also identified six economies, Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan, that have existing prohibitions but have failed to enforce them effectively. The agency stressed that all trading partners must increase their efforts to ensure trade does not inadvertently encourage or entrench forced labor worldwide.

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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.