United States Announces Phased Tariff Measures on Non-CAFTA Nicaraguan Imports
By Guy José Bendaña-Guerrero & Asociados

Effective January 1, 2026, the United States will begin implementing a phased-in tariff regime on imports from Nicaragua that do not qualify as originating goods under the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR). The measure was adopted under Section 301 of the Trade Act of 1974.
Under the announced schedule, the additional tariff will be set at zero percent as of January 1, 2026, increase to 10 percent on January 1, 2027, and reach 15 percent on January 1, 2028. These tariffs will apply only to goods that do not meet CAFTA-DR origin requirements. Any additional duties imposed under this action will be cumulative and will stack with existing tariffs, including the current 18 percent reciprocal tariff on Nicaraguan imports.
The Office of the United States Trade Representative (USTR) indicated that the timing and tariff levels may be modified should Nicaragua fail to demonstrate progress in addressing the concerns identified in the Section 301 investigation. Conversely, improvements could also influence the implementation of the measures. Pursuant to Section 305(a) of the Trade Act (19 U.S.C. § 2415(a)(1)), the USTR will issue a subsequent notice to formally implement the action.
Section 301 of the Trade Act of 1974 authorizes the United States to take action against foreign government practices that are deemed unjustifiable, unreasonable, or discriminatory and that burden or restrict U.S. commerce. The phased-in approach adopted in this case is intended to balance the need for a firm policy response with the objective of minimizing adverse effects on U.S. supply chains and commercial relationships.
