US to levy tariff on Nicaraguan imports not originating under CAFTA-DR
12 Dec '25
1 min read
Pic: Shutterstock
Insights
From January 1, the US will impose a tariff that is phased-in over two years on all imported Nicaraguan goods not originating under the Dominican Republic-Central America-United States Free Trade Agreement.
The tariff will be set at zero per cent on January 1, 2026 and will increase to 10 per cent on January 1, 2027, and to 15 per cent on January 1, 2028.
Any tariff would stack with existing tariffs.
From January 1, 2026, the United States will impose a tariff that is phased-in over two years on all imported Nicaraguan goods that are not originating under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).
The tariff will be set at zero per cent on January 1, 2026 and will increase to 10 per cent on January 1, 2027, and to 15 per cent on January 1, 2028.
From January 1, the US will impose a tariff that is phased-in over two years on all imported Nicaraguan goods not originating under the Dominican Republic-Central America-United States Free Trade Agreement.
The tariff will be set at zero per cent on January 1, 2026 and will increase to 10 per cent on January 1, 2027, and to 15 per cent on January 1, 2028.
Any tariff would stack with existing tariffs.
Any tariff would stack with others like the existing 18-per cent reciprocal tariff.
The decision was part of the United States Trade Representative’s (USTR) targeted action under Section 301 of the Trade Act of 1974 to address Nicaragua’s acts, policies and practices related to abuses of labour rights, human rights and fundamental freedom, and dismantling of the rule of law that are unreasonable and burden or restrict US commerce.
Should Nicaragua show a lack of progress in addressing these issues, this timeline and these tariff rates may be modified, an official release said.
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