USTR Announces Phased Section 301 Tariffs on Nicaraguan Goods Outside CAFTA-DR

On December 12, 2025, the United States Trade Representative (USTR) announced in a Federal Register notice that it will implement a phased Section 301 tariff on all Nicaraguan goods that do not qualify under the Dominican Republic-Central American Free Trade Agreement (CAFTA-DR).

The tariff schedule will take effect as follows:

• January 1, 2026: A 0% tariff will apply.
• January 1, 2027: The tariff will increase to 10%.
• January 1, 2028: The tariff will rise to 15%.

The USTR, in coordination with U.S. Customs and Border Protection (CBP), is expected to issue detailed implementation guidance in the coming weeks.

Review the resources below for additional information on this trade action.

Resources:

• USTR Section 301 Action on Nicaragua’s Acts, Policies, and Practices Relating to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law | United States Trade Representative
• 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