US slaps 12.5% tariff on Nigeria and seven other African nations over forced labour
By Aboki Forex —
The United States has imposed a 12.5 per cent tariff on Nigeria and seven other African countries, accusing them of failing to prevent goods produced with forced labour from entering their markets. The measure, announced by the Office of the United States Trade Representative (USTR), targets exports from these nations under Section 301 of the US Trade Act of 1974.
Which African countries are affected?
The tariff applies to Nigeria, Algeria, Angola, Egypt, Libya, Mauritania, Morocco, and South Africa. The USTR said these countries were among 38 economies found to have inadequate measures to block imports made with forced labour. An investigation covering 60 economies worldwide led to the final determination, announced on Thursday, July 24, 2026.
Why the US imposed the tariff
The USTR argued that products made with forced labour are cheaper to produce, giving these countries an unfair competitive advantage. This distorts international trade and undercuts businesses that comply with labour standards. The agency said the practice burdens American commerce by exposing US manufacturers to unfair competition and diverts ethically produced goods away from foreign markets and into the United States.
US Trade Representative Ambassador Jamieson Greer said the move reflects Washington's tougher stance on forced labour. “President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains,” Greer said. “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 added that the tariffs are intended to address both human rights concerns and unfair trade practices while encouraging countries to strengthen enforcement.
Lower tariffs for some, exemptions for others
Several economies received a lower 10 per cent tariff, including Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom. Products from the European Union, Taiwan, Japan, South Korea, and Switzerland will attract either 10 per cent or 12.5 per cent Section 301 duties, depending on applicable Most-Favoured-Nation rates.
The USTR said only countries with credible legal frameworks and effective enforcement mechanisms to block goods produced with forced labour would be exempt from the tougher trade measures. Greer praised countries that have already adopted stronger import restrictions or committed to doing so through reciprocal trade agreements, saying the US would continue monitoring their implementation.
What this means for Nigeria and African businesses
The 12.5 per cent tariff raises the cost of Nigerian exports to the United States, one of the country's largest trading partners. Businesses exporting goods like agricultural products, textiles, and manufactured items will face higher duties, reducing their competitiveness in the US market. For the naira, weaker export earnings could add pressure on foreign exchange reserves. The move also signals that Washington is now tying trade access to labour enforcement, meaning African nations may need to strengthen domestic laws and inspection systems to avoid further penalties.