Categories: BusinessNews

US penalises Nigeria with 12.5% import levy

The United States has imposed a 12.5 per cent tariff on imports from Nigeria under a new trade policy targeting countries it says have not effectively prohibited the importation of goods produced with forced labour.

The measure, announced by the Office of the United States Trade Representative on Thursday, affects imports from 60 economies that Washington says have failed to enforce bans on goods linked to forced labour.

Nigeria is among the countries facing the 12.5 per cent tariff, while countries including India, Indonesia, Malaysia, Mexico and the United Kingdom will be subject to a lower 10 per cent rate after adopting or committing to enforce restrictions on imports produced with forced labour.

The tariffs follow investigations launched by the USTR in May 2026 under Section 301 of the Trade Act, covering 60 of the United States’ largest trading partners.

According to the agency, the review included more than 1,600 written submissions, public hearings involving over 100 witnesses and consultations with more than 45 governments before the new tariffs were announced.

The USTR said countries that have implemented, or pledged to implement, effective forced labour import prohibitions qualify for the reduced 10 per cent tariff.

It listed Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom among countries eligible for the lower rate.

The agency also stated that tariffs ranging between 10 and 12.5 per cent would apply to certain products from the European Union, Taiwan, Japan, South Korea and Switzerland, depending on the scope of exemptions.

For Nigeria, the USTR said a 12.5 per cent tariff would apply to its exports to the United States, except for products covered under specified exemptions.

According to a Federal Register notice, the decision followed findings from the Section 301 investigation, public comments, testimony and recommendations from advisory committees.

The notice stated that the tariff level and the scope of exemptions were considered appropriate to address the trade practices identified during the investigation.

The latest action comes after President Donald Trump invoked Section 122 of the Trade Act of 1974 to introduce a temporary universal tariff on imports after the US Supreme Court blocked his administration’s broader tariff plan under the International Emergency Economic Powers Act.

US Trade Representative Jamieson Greer said the policy was intended to encourage trading partners to strengthen measures against forced labour in global supply chains.

He noted that the United States has maintained a forced labour import ban for nearly a century and said it was time for its trading partners to adopt similar measures.

The USTR said the tariffs would not apply to certain categories of products, including raw materials that could create domestic supply shortages, goods whose restriction could disrupt the US economy, products unavailable in sufficient quantities from the United States or alternative suppliers, and selected items from countries that have adopted or committed to implementing forced labour import bans.

It added that additional exemptions were granted where imposing tariffs would not effectively address the trade practices identified in the investigation.

LUKMAN ABDULMALIK

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