Home International US mulls 27.5% tariff on Nigeria over forced labour concerns

US mulls 27.5% tariff on Nigeria over forced labour concerns

0
23
US mulls 27.5% tariff on Nigeria over forced labour concerns
Tinubu and Trump

● USTR names Nigeria among 54 economies in Section 301 probe; public consultation opens

Nigeria risks tariffs of up to 27.5 per cent on exports to the United States under a proposed US trade policy targeting countries with weak enforcement against forced labour in global supply chains.

The Office of the United States Trade Representative, USTR, unveiled the proposal Thursday after a Section 301 investigation into forced labour regulations.

Nigeria is among 54 economies identified, and one of seven African countries listed for allegedly failing to sufficiently prohibit or enforce restrictions on goods linked to forced labour. Others are Algeria, Angola, Egypt, Libya, Morocco and South Africa.

Advertisement

—10-12.5% additional duties on top of 10% baseline—

Under the proposed framework, affected countries could face additional tariffs of 10 to 12.5 per cent. Combined with an existing 10 per cent baseline tariff, total duties on some Nigerian exports could rise to 27.5 per cent, making them less competitive in the US market.

USTR said the investigation found several trading partners lacked effective policies to prevent forced labour products from entering international markets. “Weak enforcement creates unfair advantages for producers by lowering production costs and undermining fair competition,” the agency argued.

—“We will no longer tolerate this disparity”—

US Trade Representative Jamieson Greer said the proposal reflects Washington’s commitment to addressing disparities in global trade enforcement. “The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. We will no longer tolerate this disparity,” Greer said.

The measures extend beyond Africa and could affect China, India, Vietnam, Brazil and the United Kingdom.

—Consultation opens for Nigeria to present defence—

For Nigeria, the development comes as government pushes to diversify exports beyond crude oil and expand access to international markets. Trade analysts warn higher tariffs could hurt exporters relying on competitive pricing to gain US market share.

Experts note the proposal is not yet a final sanction but signals increased scrutiny over labour practices and supply chain transparency. Affected countries may need to strengthen compliance systems and demonstrate adherence to international labour standards to avoid penalties.

USTR has opened a public consultation, allowing governments, businesses and stakeholders to submit comments and evidence before a final decision. Nigeria and other listed countries can use the window to engage US authorities, present proof of existing enforcement measures and seek exemption.

The outcome will be closely watched by exporters, investors and policymakers due to poten ial impact on trade flows, export earnings and US mark

et access.






Leave a Reply