301 Tariffs on Nicaragua Products Announced by the USTR

301 Tariffs on Nicaragua Products Announced by the USTR

The Office of the U.S. Trade Representative (USTR) announced on December 10, that it will authorize Section 301 tariffs on products from Nicaragua. These tariffs will not apply to goods originating under the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR). The action follows continued concerns regarding Nicaragua’s human rights abuses and disregard for the rule of law.

The tariff will be set at 0% beginning January 1, 2026, and will increase to 10% on January 1, 2027, and to 15% on January 1, 2028. Any Section 301 tariff would be applied in addition to existing duties, including the current 18% Reciprocal Tariff. USTR also noted that if Nicaragua fails to make progress in addressing these concerns, both the timeline and the tariff rates may be adjusted.

“This action balances the need for a strong response with the importance of minimizing disruption for U.S. businesses. Pursuant to Section 305(a) of the Trade Act (19 U.S.C. 2415(a)(1)), USTR will issue a subsequent notice to implement this action,” the agency added.

Reach out to your Western Overseas representative with any questions.