US to impose phased-in tariffs on Nicaragua after finding labor abuses

WASHINGTON: The United States will impose a phased-in tariff on some Nicaraguan goods starting Jan. 1 over labor and human rights concerns, the Office of the U.S. Trade Representative said on Wednesday, adding that the tariff will increase to 10% the following year and 15% in 2028.

AI Brief

USTR proposes tariffs on Nicaraguan imports not covered by CAFTA, adding to existing 18% duties.
Timeline may shift if Nicaragua fails to improve labor rights, officials warn.
Trump administration previously threatened tariffs up to 100% over human rights and trade concerns.

The tariff rate would apply to "all imported Nicaraguan goods that are not originating under the Dominican Republic-Central America-United States Free Trade Agreement," USTR said.

It would stack on other tariffs, including an existing 18% reciprocal tariff, according to USTR.

USTR said the timeline for the tariff increases may be modified if the U.S. determined that Nicaragua shows a lack of progress in addressing the labor rights concerns.

The Trump administration had previously threatened to impose up to 100% in tariffs on Nicaraguan goods after finding the country's labor and human rights policies unreasonable and impeding U.S. commerce.