Members of the organised private sector have warned that the United States’ decision to impose a 12.5 per cent tariff on certain Nigerian exports will affect some exporters despite exemptions for key raw materials. They urged the Federal Government to move swiftly to address regulatory gaps and seek a review of the measure.
The United States announced the tariff on July 23 as part of a new trade measure targeting countries it said had failed to prohibit the importation of goods produced with forced labour.
The tariff affects imports from 60 economies, including Nigeria.
Countries such as India, Indonesia, Malaysia, Mexico and the United Kingdom will pay a lower 10 per cent rate after adopting or committing to implement prohibitions on imports linked to forced labour.
President of the Nigerian-American Chamber of Commerce, Sheriff Balogun, said the chamber supported global efforts to eliminate forced labour but believed engagement with the US offered the best path to resolving the issue.
“The concern behind this measure — the fight against forced labour — is one that Nigeria shares fully, and one the Chamber supports without reservation.
No responsible nation, and certainly no responsible business community, wants goods tainted by forced labour in its supply chains,” Balogun said.
He added: “So we do not see this as a hostile act. We see it as an invitation to a conversation — a conversation about standards, documentation and how Nigeria demonstrates to the world what we already know: that our exporters are honest people doing honest business. Naturally, we would have preferred a different approach, and we believe the picture painted of Nigeria does not fully reflect the efforts our country has made. But our posture is engagement, not confrontation.”
On the impact on businesses, Balogun acknowledged that some exporters would be affected but noted that exemptions would cushion the effect.
“Yes, some of our members will feel this, and we won’t pretend otherwise. The good news is that the measure carves out exemptions for key raw materials, so a substantial portion of our trade with the United States continues to flow. Where it bites is among our non-oil exporters — the agro-processors, the SMEs shipping cocoa products, cashew, sesame, leather and light manufactures. For a small exporter, 12.5 per cent is significant; it affects competitiveness and planning.
“But let me also say this: our members are resilient, and the American market values Nigerian products. Our job as a Chamber is to make sure this remains a temporary headwind, not a permanent barrier,” he said.
Balogun expressed optimism that the tariff could be reviewed, noting that countries that had strengthened measures against forced-labour imports received lower tariff rates. “If you study the announcement carefully, countries that adopted or committed to measures against forced-labour imports were placed on a lower rate. So the door is not closed — in fact, the pathway to relief is written into the policy itself,” he said.
He said the chamber would support the Federal Government’s engagement with Washington, work with American business partners and help Nigerian exporters strengthen supply chain documentation and certification.
Also reacting, the Director-General of the Lagos Chamber of Commerce and Industry, Dr Chinyere Almona, said the tariff would directly affect exporters to the US by raising the landed cost of Nigerian goods.
“The tariff will directly affect LCCI members and other Nigerian businesses exporting affected goods to the United States. The additional duty raises the landed cost of Nigerian products and could weaken their competitiveness in the U.S. market,” Almona said.
She noted that exporters with thin margins and heavy dependence on the US market would be more vulnerable, adding that logistics, manufacturing, agriculture, processing and other export-support services could also experience indirect effects.
However, she stressed that the impact should be assessed carefully because the tariff applied to several economies and exempted some product categories.
“We therefore need an urgent product- and sector-level assessment to establish Nigeria’s actual exposure and the implications for businesses, jobs and export earnings,” Almona stressed.
She urged the Federal Government to immediately engage the Office of the United States Trade Representative, review Nigeria’s trade and customs framework, strengthen enforcement against forced labour imports, consult the private sector and accelerate export diversification.
“We urge the Federal Government to engage the United States urgently, close the identified regulatory and enforcement gaps, and seek an early review, reduction or removal of the additional tariff,” Almona said.
Also, the Chief Executive Officer of Widescope Group and a member of the Nigerian-American Chamber of Commerce, Dr Segun Musa, warned that the tariff would raise the landed cost of Nigerian exports and weaken their competitiveness in the American market.
“The additional 12.5 per cent tariff review impacts Nigerians engaging in exports to the United States of America because it increases the landed price and negates the competitiveness of Nigerian exports in the U.S. market,” Musa said.
Musa observed that while every country had the sovereign right to review its trade policies, the decision could disrupt export projections for affected countries, including Nigeria.
He said, “It is the right of every sovereign nation to review tariff rates to meet its national interests on trade policies; however, it could disrupt the trade projections of the affected countries, especially Nigeria, by increasing the cost of exports, reducing job opportunities and investments, which also affects foreign income earnings.”
Musa called on the Federal Government to intensify diplomatic engagement with US officials, support exporters to improve competitiveness, develop alternative export markets and review tariffs on selected imports from the United States where Nigeria has a competitive advantage.