US Imposes 12.5 Percent Tariff on Nigeria Over Forced Labour Practices

Tariff Tiers and Enforcement Strategy

The new trade policy, announced by the USTR on Thursday, July 23, 2026, establishes a tiered system for import duties. According to the USTR, the investigation found that all 60 economies engaged in acts, policies, and practices contrary to the U.S. ban on goods made with forced labour. Economies that have enacted and enforced forced labour import prohibitions, or committed to doing so through an Agreement on Reciprocal Trade (ART), are subject to a 10 percent tariff. Nations that the U.S. said have not taken sufficient action, such as Nigeria, face a higher 12.5 percent rate. The USTR stated, 10 percent is the appropriate rate of Section 301 duties for investigated economies that (i) impose a forced labor import prohibition; (ii) have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade.

The investigation, which was launched in May 2026 according to some accounts, involved consultations with over 45 governments, the review of more than 1,600 written submissions, and public hearings involving over 100 witnesses. A memorandum signed by President Donald J. Trump on July 23, 2026, formalized the findings that some countries, including Canada, Ecuador, the European Union, Mexico, and Pakistan, have laws prohibiting such imports but do not enforce them effectively, while others have unfulfilled commitments.

Trump Imposes Tariffs on 60 Countries and 50% Duties on Canadian Goods

Global Response and Economic Objections

The international reaction has been swift, with many of the targeted countries rejecting the allegations. Australian Trade Minister Don Farrell rejected any claims linking Australia to forced labour. We believe that amongst all of the countries in the world, Australia does take the issue of slavery, modern slavery, seriously, and will continue to do that, Farrell told reporters in Adelaide. Australia, a major exporter of beef, gold, and copper, has indicated it will continue to lobby the United States regarding the measures.

The latest duties were imposed as another 10 percent global tariff reached its legal time limit on Thursday night, provoking accusations that the Trump administration was again misusing U.S. law. The administration’s broader strategy, which began in April 2025 with what was proclaimed as Liberation Day, has been described as an effort to jumpstart U.S. manufacturing and address uneven trade relations. However, President Trump has regularly faced major setbacks, with previous signature reciprocal tariffs deemed unconstitutional by the U.S. Supreme Court.

Motivations Behind the Trade Measures

While the administration cites forced labour as the rationale for the tariffs, some observers suggest these measures are driven by different priorities. One official, when asked about the forced labour justification, stated: “I think they were looking for a legal reason to put the tariffs in and that they can maintain them because their goals and Greer has been very clear about this, as has Trump, is about the trade deficit and it is about US manufacturing, it is not about forced labour.”

The USTR clarified that the 12.5 percent tariff on Nigeria and other nations is part of a measure targeting countries Washington says have failed to prohibit the importation of goods produced with forced labour. This creates a higher tariff bracket for these nations compared to those that have already adopted or committed to banning such imports, such as India, Indonesia, Malaysia, Mexico, and the United Kingdom, which will face the lower 10 percent rate. Additionally, special tariff quotas have been added for textiles from Bangladesh, Cambodia, Indonesia, and Malaysia, which are conditional on the import of U.S. textiles and cotton.

United States Imposes New Tariffs on EU and 59 Other Nations

As of late July 2026, the U.S. government noted that Nigerian exports to the American market will now attract the additional 12.5 percent duty, except for products covered by specified exemptions outlined in the notice. The policy includes a short grace period for goods already in transit, but the long-term impact on global trade relations remains uncertain as affected nations weigh their responses to the U.S. administration’s latest trade actions.