WASHINGTON (dpa-AFX) - The U.S. Government has announced that it will impose a 10 percent tariff on goods imported from Nicaragua from 2027, alleging that the Central American country's policies and practices 'restrict US commerce.'
The Office of the United States Trade Representative said USTR took the punitive action under Section 301 of the Trade Act of 1974 to address Nicaragua's acts, policies, and practices related to abuses of labor rights, abuses of human rights and fundamental freedoms, and dismantling of the rule of law.
USTR said it took into account more than 2,000 public comments and consulted with government agency experts and advisors.
The duties will phase in over two years, with the tariff set at zero percent on January 1, 2026, increasing to 10 percent on January 1, 2027, and to 15 percent on January 1, 2028.
'Effective January 1, 2026, the United States will impose a tariff that is phased-in over two years on all imported Nicaraguan goods that are not originating under the Dominican Republic-Central America-United States Free Trade Agreement,' USTR said in a press release.
Any tariff would stack with others such as the existing 18 percent Reciprocal Tariff on Nicaraguan goods that President Donald Trump imposed earlier this year.
The Trump administration has made it clear that if Nicaragua shows a lack of progress in addressing the alleged issues, 'this timeline and these rates may be modified'.
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