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USTR implementation of tariff increases on imports from Nicaragua

Modifies subchapter III of chapter 99 of the HTSUS, effective January 1, 2026

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december 23, 2025

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. 

For more information, contact a professional with KPMG Trade & Customs services:

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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