USTR implementation of tariff increases on imports from Nicaragua
Modifies subchapter III of chapter 99 of the HTSUS, effective January 1, 2026
The Office of the United States Trade Representative (USTR) today released a notice announcing the implementation of phased tariff increases on Nicaraguan goods not originating under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).
The phased tariff, which was announced earlier this month (read TradeNewsFlash), will be set at 0% on January 1, 2026, 10% on January 1, 2027, and 15% on January 1, 2028. The implementation modifies subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS), effective January 1, 2026.
Today’s announcement follows an investigation initiated in December 2024 concerning Nicaragua's acts, policies, and practices related to labor rights, human rights, and the rule of law. The USTR determined these practices are unreasonable and burden or restrict U.S. commerce, warranting action under the Trade Act of 1974.