Section 301 Investigation of Nicaragua

On December 12, 2025, the Office of the U.S. Trade Representative announced plans to phase in higher tariffs on imports from Nicaragua following a Section 301 determination that 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 are unreasonable and burden or restrict U.S. commerce. 

The U.S. will impose an additional tariff on all imported Nicaraguan goods that are not originating under the Dominican Republic-Central America-U.S. Free Trade Agreement. This tariff will be set at zero on Jan. 1, 2026, and will increase to 10 percent on Jan. 1, 2027, and 15 percent on Jan. 1, 2028. This timeline and these rates may be modified if Nicaragua shows a lack of progress in addressing applicable issues.

USTR notes that this tariff will stack on top of other applicable tariffs, such as most-favored-nation duties and the 18 percent “reciprocal” tariff imposed under the International Emergency Economic Powers Act.

Official Documents

• Federal Register: Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law (December 29, 2025)
• Federal Register: Notice of Action: Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law (December 12, 2025)
• Federal Register: Determination and Request for Comments: Action Pursuant to Section 301; Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law (October 23, 2025)
• USTR: Section 301 Investigation Report on Nicaragua's Acts, Policies and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law (October 20, 2025)
• Federal Register: Initiation of Section 301 Investigation, Hearing, and Request for Public Comments: Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights, and Rule of Law (December 13, 2024)