The move follows earlier threats from the Trump administration to impose much steeper tariffs, including rates as high as 100%, over similar concerns.
The US will introduce new tariffs on selected Nicaraguan imports starting 1 January 2026, citing ongoing labour and human rights issues.
According to the US Trade Representative (USTR), the duties will be phased in gradually, rising to 10% in 2026 and 15% in 2028. The tariffs will apply to products not covered by the DR-CAFTA (Dominican Republic-Central America-United States Free Trade Agreement).
These charges will be in addition to the existing 18% reciprocal tariff, raising the overall cost of affected goods. USTR also signalled that the schedule could change if Washington concludes that Nicaragua is not making meaningful progress on labour rights.
The move follows earlier threats from the Trump administration to impose much steeper tariffs, including rates as high as 100%, over similar concerns. If fully implemented, these actions could result in tariffs exceeding 100%, as Nicaragua would lose its zero-tariff status and revert to higher “Most Favoured Nation” rates.
Earlier, in October 2025, the US Trade Representative’s office announced that the Trump administration was considering imposing tariffs of up to 100% on Nicaraguan goods due to concerns about the country’s labour and human rights practices, which are deemed harmful to US commerce.
