US slaps 12.5% tariff on Nigerian exports over forced labour concerns
By Aboki Forex —
The United States has imposed a 12.5% tariff on most Nigerian exports after a Section 301 investigation by the Office of the United States Trade Representative (USTR) found that Nigeria has not adopted or meaningfully enforced a ban on goods produced with forced labour. The measure, announced as part of a broader trade action covering 60 economies, places Nigeria in a higher tariff bracket than countries that have committed to banning forced-labour imports.
Two-tier tariff system hits Nigeria harder
The USTR 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.
The new framework creates two tariff tiers. Countries that have enacted or pledged to enact bans on forced-labour imports 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, according to Punch reports.
Exemptions and legal basis
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.
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.
USTR pushes trading partners to strengthen forced labour laws
US Trade Representative Jamieson Greer said the tariffs are designed to push trading partners into strengthening their legal frameworks against forced labour. Greer stated: '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.'
Nigeria has constitutional protections and anti-legislation that prohibit forced and compulsory labour, but enforcement has continued to attract concern in international assessments.
What this means for Nigerian exporters and the naira
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. With Nigeria's trade surplus reaching N7.55 trillion in the first quarter of 2026, driven by rising exports, any slowdown in US-bound shipments could pressure the naira if export earnings dip.