The USTR is considering tariffs of up to 100% on Nicaraguan goods over alleged labour and human rights violations affecting US trade.
The US Trade Representative’s office announced that the Trump administration is considering imposing tariffs of up to 100% on Nicaraguan goods due to concerns over the country’s labour and human rights practices, which are deemed harmful to US commerce.
This decision follows a “Section 301” investigation initiated during the final days of President Joe Biden’s administration. The proposed measures include tariffs on all or selected Nicaraguan products and the potential suspension of Nicaragua’s benefits under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).
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.
Since joining CAFTA-DR in 2006, Nicaragua has benefited from duty-free access to the US for many goods. Still, the USTR report accuses the Ortega-Murillo government of severe violations, including child and forced labour, human trafficking, suppression of union rights, and arbitrary arrests.
The administration is currently seeking public and industry feedback on the proposed actions, with comments accepted until 19 November 2025.
