•Urge FG to tighten labour standards, diversify export markets •CPPE links action to Trump’s trade war with China •Say Dangote Refinery, MSMEs may face fresh pressure Dike Onwuamaeze and Sunday Ehigiator Economic experts have warned that the United States’ decision to impose a 12.5 per cent tariff on Nigerian imports could undermine the country’s export competitiveness, squeeze businesses and weaken foreign exchange earnings.They described the action as a fresh challenge for exporters, particularly manufacturers and small businesses seeking access to the US market. While some analysts linked the move to the Trump administration’s broader protectionist trade agenda, others urged the federal government to strengthen labour standards and diversify export destinations. They also cautioned that failure to address these concerns could further erode Nigeria’s position in global trade.The United States yesterday imposed a 12.5 per cent tariff on imports from Nigeria over what it described as the country’s failure to effectively prohibit the importation of goods produced with forced labour, a move expected to put additional pressure on Nigerian exporters and policymakers. The new tariff, announced by the Office of the United States Trade Representative (USTR), was part of a broader trade measure affecting 60 economies investigated under Section 301 of the US Trade Act.The action follows months of investigations into the labour practices of America’s major trading partners.According to the USTR, Nigeria falls into the category of countries that have not “imposed and effectively enforced a prohibition on the importation of goods produced with forced labour,” thereby attracting a higher tariff rate of 12.5 per cent. By contrast, countries such as India, Indonesia, Malaysia, Mexico and the United Kingdom will be subjected to a lower 10 per cent tariff after implementing or committing to enforce import bans on goods linked to forced labour. The USTR said the investigations, launched in May 2026, involved more than 1,600 written submissions, public hearings featuring over 100 witnesses, and consultations with more than 45 governments before the final determination was reached.In a Federal Register notice, the agency stated that Nigeria’s exports would attract the 12.5 per cent tariff, except for products covered under specified exemptions. It stated: “Based on the findings in the investigation of Nigeria, considering the public comments, testimony, and the advice of the Section 301 Committee, as well as the advice of advisory committees, and in accordance with the specific direction of the President, the Trade Representative has determined to impose 12.5 percent tariffs on products of Nigeria, except as provided in Annex I and Annex II, Part A, of this Notice. “The Trade Representative has determined, in accordance with the specific direction of the President, that the tariff rate to be applied, and the scope of tariffs and exemptions, are appropriate to obtain the elimination of the acts, policies, and practices determined to be actionable in the investigation.” The latest measure comes after US President Donald Trump invoked Section 122 of the Trade Act of 1974 to impose a temporary universal tariff on imports following a US Supreme Court ruling that blocked his administration’s broader tariff initiative under the International Emergency Economic Powers Act.US Trade Representative Jamieson Greer said the action was intended to encourage trading partners to adopt stronger safeguards against 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. It’s well past time for our trading partners to do the same.”The USTR clarified that the tariffs would not apply to certain exempted products, including raw materials whose restriction could trigger domestic supply shortages, goods capable of causing economy-wide disruptions, products unavailable in sufficient quantities within the United States or from alternative sources, and selected goods from countries that have already adopted or pledged to implement forced labour import bans. The agency also noted that additional exemptions were granted where tariffs were considered unlikely to eliminate the trade practices under investigation. Reacting to the development, the Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE) Dr. Muda Yusuf, said the reason for the new wave of tariff cannot be supported by data and described it as a deliberate design by President Donald Trump’s administration to penaslise countries doing serious business with China. Yusuf told THISDAY that China is Nigeria’s biggest trading partner for import of non
Don't miss out on breaking stories and in-depth articles.
