Nigeria Faces US Forced Labour Tariffs

 

Nigerian export port under US tariff threat after USTR forced labour ruling June 2026


Nigeria has been named among 60 economies that could face additional tariffs from the United States, after a formal trade investigation found they had not done enough to stop goods made with forced labour from entering their markets.

The Office of the United States Trade Representative concluded its findings on June 2, 2026, and proposed trade action against all 60 economies reviewed. The investigations were launched on March 12, 2026, under Section 301 of the US Trade Act of 1974, a law that allows the US government to respond to foreign trade practices it considers unfair or damaging to American commerce. 

The USTR found that 54 of the 60 economies examined had failed to impose and enforce prohibitions on imports linked to forced labour. Countries in this category face a proposed additional tariff rate of 12.5 per cent.  A separate group of economies that already have prohibition mechanisms but were found to have enforcement shortcomings face a lower proposed rate of 10 per cent. 

The six economies in that lower category are Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan. 

Nigeria falls in the stricter group. Combined with the existing 15 per cent tariff burden, Nigeria's effective tariff rate on exports to the US could rise to 27.5 per cent if the proposal is approved. 

The 60 trading partners under investigation collectively account for more than 99 per cent of US imports recorded in 2024. 

US Trade Representative Jamieson Greer, in announcing the findings, said that while there is broad global consensus against forced labour, governments had repeatedly failed to impose and enforce meaningful bans. He said the failure of major trading partners to address the issue creates an uneven competitive environment for American workers and businesses. 

The USTR said it received testimony from nearly 60 witnesses and about 500 written comments and rebuttal submissions before reaching its determination. 

The USTR concluded that the failure of each of the listed economies to impose and effectively enforce a forced labour import ban burdens or restricts US commerce by exposing American producers to unfair competition, both in export markets and inside the United States. 

The USTR also argued that weak enforcement allows companies benefiting from forced labour to gain unfair cost advantages, distorting international trade and undermining businesses that comply with labour standards.

The USTR also proposed a textile mechanism that would allow a limited volume of apparel and textile imports from certain economies to enter the US at a reduced Section 301 tariff rate. 

Other African countries on the list alongside Nigeria include Algeria, Angola, Egypt, Libya, Morocco and South Africa.  Other major economies named include China, India, Vietnam, Brazil, Japan and the United Kingdom. 

The proposed measures have not yet taken effect. The USTR's Section 301 Committee will hold public hearings on the proposed actions on July 7, 2026. Requests to appear at the hearings, along with a summary of proposed testimony, must be submitted by June 22, 2026. Written comments are due by July 6, 2026. 

One deadline adds urgency to the process. A temporary 10 per cent import surcharge under Section 122 expires on July 24, 2026, unless Congress acts to extend it. The USTR is expected to move to impose the Section 301 duties before that date to avoid a gap in tariff coverage. 

For Nigeria, the investigation introduces potential trade risks at a time of evolving external sector dynamics. The country maintains active trade relationships with the United States, with non-oil exports including agricultural and manufactured goods playing an increasing role in diversification efforts. 

The Nigerian government had not issued a public response to the USTR findings at the time of publication.

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