Nicaragua Section 301 Tariffs to Exclude CAFTA-DR Products
The Office of the U.S. Trade Representative said it will impose a 10% Section 301 tariff on Nicaraguan imports beginning Jan. 1, 2027, but the tariffs won't apply to goods that qualify for the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). That tariff would be in addition to the 18% reciprocal tariff and most-favored nation rates, USTR said Dec. 10. The announcement says the Section 301 tariffs, which are intended to address human and labor rights abuses and the "dismantling of the rule of law," would increase to 15% on Jan. 1, 2028. "Further, should Nicaragua show a lack of progress in addressing these issues, this timeline and these rates may be modified," USTR said.
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"This action balances the need for action and the importance of limiting disruption for U.S. businesses," the release said. A notice will be issued to implement the tariff hike.