In short
- The US Trade Representative announced on July 23 that goods from Nigeria will be taxed at 12.5% when they're cleared by US customs. The duty took effect at 12:01 am eastern time on July 24.
- Nigeria's four largest exports are all on the exemption list: crude oil, cocoa beans, urea and cashew nuts.
- Sesame seeds are exempt only if they're shipped as seed for planting. The duty is charged on sesame sold as food or for oil.
- USTR examined whether countries ban forced-labour imports, not how goods are made. The higher rate doesn't mean Nigerian goods are made with forced labour, and USTR didn't name any Nigerian products or industries.
- You can't rely on AGOA. USTR says eligibility for a preference doesn't exempt a product.
What was announced
The US Trade Representative published a Notice of Action on July 23, completing an investigation that began on March 12 and covered 60 of America's largest trading partners. It applies to goods cleared by US customs from 12:01 am eastern time on July 24.
USTR used Section 301 of the Trade Act, which lets the US respond to foreign trade practices it judges unfair, and examined whether each country bans the import of goods made with forced labour, and whether it enforces that ban. USTR found that 54 of the 60, Nigeria among them, don't ban those imports at all, and that the remaining six, Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan, do ban them but aren't enforcing the ban effectively.
USTR set the rate at 10% for countries that ban forced-labour imports, that have committed to a ban through an Agreement on Reciprocal Trade, or that have a partial ban blocking some of those goods. Everyone else is at 12.5%. Seventeen countries are at the flat 10%, among them the United Kingdom, India, Mexico and Canada. USTR set Nigeria at 12.5%, the flat rate for 38 countries in all, including China, Brazil, Vietnam and Russia. The European Union and Taiwan are at 10% and Japan, South Korea and Switzerland at 12.5%, in each case applied net of the product's most-favoured-nation duty.
USTR examined import bans, not production
USTR didn't investigate Nigerian production, and didn't name any Nigerian products or industries. Nigeria doesn't ban forced-labour imports itself, which is why it's at 12.5% rather than 10%.
Nigeria's largest exports are exempt
The duty applies to all Nigerian goods except those listed in the notice's annexes. U.S. Note 52 to the tariff schedule sets out the exemptions by Harmonized Tariff Schedule code, and Nigeria's biggest export lines are on it.
A Harmonized Tariff Schedule code is the number US customs uses to identify a product, and every shipment is entered under one. USTR lists the exempt codes in the annexes to the notice, and the codes beside the products below are taken from that list.
- Crude oil (heading 2709, which covers crude of every grade) is exempt. Nigeria sold $3.45 billion of crude to the United States in 2025, 46.6 million barrels and 52.2% of all African crude going to the US.
- Cocoa beans (1801.00.00) are exempt. Cocoa beans were Nigeria's largest non-oil export in 2025 at $1.99 billion worldwide. Cocoa shells, husks and waste (1802.00.00) are exempt too.
- Urea (3102.10.00) is exempt. Urea was the second largest non-oil export at $1.29 billion.
- Cashew nuts (0801.31.00 in shell, 0801.32.00 shelled) are exempt. Cashews were third at $456.9 million.
- Natural gas (2711.11.00 liquefied, 2711.21.00 gaseous) is exempt.
USTR didn't attach a condition to any of these codes, so they're exempt whatever the goods are used for.
The wider list also covers rare earths and critical minerals, base metals, coal, pharmaceuticals and certain organic chemicals, aircraft parts, and coffee, tea, spices and certain fruits and vegetables. Goods already subject to Section 232 tariffs are exempt, and so are informational materials, donations and accompanied baggage.
What the duty is charged on
Sesame seeds are the clearest case. USTR exempts subheading 1207.40.00, sesame seed for sowing, and only that. The duty is charged on sesame sold as food or crushed for oil. Nigeria exported $300.3 million of sesame seeds in 2025.
USTR limits some entries in the same way. A code marked "Ex" is limited to the product description beside it, one marked "Aircraft" applies only to civil aircraft use, and one marked "Pharma" only to pharmaceutical use.
The duty is charged at 12.5% on everything not on the list. Because USTR sets the exemptions by code and makes some of them conditional, you only get a reliable answer for your own product by finding its code and looking that code up in the annexes to the notice, which USTR publishes on its website. Your customs broker or your US buyer can do both for you.
USTR declined to set up an exclusion process and didn't order a periodic review, so a business can't apply to have its product exempted. Any change to the action runs through Section 307 of the Trade Act instead.
Goods already in transit
There is an exception for shipments that were already in transit before July 24.
Goods that were loaded onto a vessel and in transit before 12:01 am eastern time on July 24 aren't charged the additional duty, as long as they're cleared by US customs before 12:01 am eastern time on July 28. Goods already in a US warehouse have to be cleared by the same deadline.
USTR describes this exception in terms of a vessel, so anyone shipping by air should check whether it applies at all.
Is a shipment exempt under AGOA?
No. Nigeria's duty-free access under the African Growth and Opportunity Act (AGOA) was reauthorised in February and is in force until December 31, 2026, covering more than 1,800 products.
USTR addresses this directly. Products eligible for special tariff treatment under general note 3(c)(i) of the tariff schedule, the note that covers AGOA, are still subject to the additional duty except as the note otherwise provides. The 12.5% is charged on a Nigerian product entering duty-free under AGOA unless its code is in the annexes.
The rate isn't permanent
The rate for each country depends on its own forced-labour import regime, and Nigeria is at 12.5% because it doesn't ban forced-labour imports. If Nigeria adopts a ban and enforces it, USTR can lower the rate to 10%.
Key terms
- Section 301: the part of the US Trade Act of 1974 that lets the US investigate and respond to foreign trade practices it considers unfair. It's the legal basis for this action.
- Forced labour import prohibition: a law banning the import of goods made with forced labour. The US has had one for close to a century. Whether a country has one decided the 10% and 12.5% rates.
- U.S. Note 52: the note USTR added to the US tariff schedule through the Notice of Action it published on July 23. It sets out the new tariff headings and the exemption lists.
- HTS code: the Harmonized Tariff Schedule code that identifies a product for US customs. USTR sets the exemptions by code, so this is what decides whether the duty is charged. Your customs broker or your US buyer will know the code for your product.
- Scope limitation: a marker beside an exempt code narrowing it to a particular description or use.
- AGOA: the African Growth and Opportunity Act, which gives eligible African countries duty-free access to the US for more than 1,800 products. It expires at the end of 2026.
Frequently asked questions
Does this mean the US is accusing Nigeria of using forced labour?
No. USTR looked at whether each country bans the import of goods made with forced labour at its own border. Nigeria was charged the higher rate because it doesn't ban those imports, and USTR didn't name any Nigerian products or industries.
Does the tariff apply to crude oil?
No. USTR exempts crude oil of every grade, whatever it's used for.
Is the duty charged on cocoa, urea and cashews?
No. USTR exempts cocoa beans, urea and cashew nuts, and didn't attach a condition to any of them.
What about sesame seeds?
Sesame seeds are exempt only if they're shipped as seed for planting. The duty is charged on sesame sold as food or for oil.
Is my shipment exempt under AGOA?
No. USTR says products eligible for special tariff treatment are still subject to the additional duty unless the note provides otherwise.
What happens to goods already shipped?
Goods loaded onto a vessel and in transit before 12:01 am eastern time on July 24, and cleared by US customs before 12:01 am eastern time on July 28, aren't charged the additional duty.
