U.S. Targets Nicaragua on Trade

The United States is increasing pressure on Nicaragua, with the Office of the U.S. Trade Representative announcing action under Section 301 of the Trade Act of 1974. The move follows findings that labor rights abuses, human rights violations, and erosion of the rule of law in Nicaragua are burdening U.S. commerce. A review that included public comments, agency consultations, and expert input reinforced concerns from USTR’s 2024–2025 investigation.

The National Cotton Council welcomed the decision, noting it balances accountability and trade. “We support USTR’s goal of ensuring that America’s trading partners do not violate the fundamental freedoms of their citizens. We also appreciate USTR for not penalizing the qualified trade under CAFTA-DR,” said NCC Chairman Patrick Johnson.

Beginning January 1, 2026, the United States will phase in new tariffs on Nicaraguan imports that do not qualify under CAFTA-DR, starting at zero percent, rising to 10 percent in 2027, and reaching 15 percent in 2028, in addition to existing duties.