U.S hits Nigeria, 7 African nations with 12.5% tariff over forced labour claims

The action, taken under Section 301 of the US Trade Act of 1974 by the Office of the United States Trade Representative, USTR, was part of a sweeping measure against 38 economies that the US accused of failing to impose and effectively enforce a prohibition on the importation of goods produced with forced labour after launching an investigation into 60 economies.” USTR, which initiated investigations earlier on 60 economies in June, found that countries including Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom, were either now taking steps to impose a forced labour import prohibition; have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade; or imposed a partial regime with the effect of preventing the importation of certain forced labour goods, and imposed a 10 per cent on them.

According to the USTR, which announced the outcome of its final investigation and decision on Thursday, countries that fail to stop the import of goods produced with forced labour gain an unfair edge by allowing cheaper products to flood global supply chains and argue that this distorts competition and undermines American workers and businesses.