United States Announces Phased Tariff Measures on Non-CAFTA Nicaraguan Imports

By Guy José Bendaña-Guerrero & Asociados

United States Announces Phased Tariff Measures on Non-CAFTA Nicaraguan Imports

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.

Guy José Bendaña-Guerrero & Asociados

GUY JOSE BENDAÑA GUERRERO & ASOCIADOS has a long and prosperous tradition in the field of intellectual property (IP) in Nicaragua, with roots that go back to more than 100 years, resulting on long-term relationships with renowned clients and attorneys worldwide.

The firm has its origins in the law firm Henry Caldera & Henry Caldera-Pallais, founded in 1907 by Mr. Henry Caldera. That same year of 1907, through the efforts of Mr. Caldera, Nicaragua had its first Trademark Law. In the late 1930’s, Mr. Caldera’s oldest son, Dr. Henry Caldera-Pallais, after studying law in Nicaragua, attended the University of Michigan, where he graduated as a Registered U.S. Patent Attorney. Dr. Caldera-Pallais in 1964 was a founding member of the Interamerican Association of Intellectual Property (ASIPI), the first regional intellectual property organization in the Americas. The firm continued to grow during the administration of Dr. Franklin Caldera, son of Dr. Caldera-Pallais, who obtained his doctoral degree in law from the Universidad Centroamericana in 1973.

Since 1985 the current partners, Dr. Guy José Bendaña Guerrero and Mrs. Blanca Aragón de Bendaña, took over the management of the firm. Dr. Bendaña Guerrero, Director of the firm, has distinguished himself as one of the most respected authorities in Central America in the field of intellectual property and law in general, being the author of several books such as “Course of Industrial Property Law”, “Study of the new Laws of Industrial Property” and “New Study of Contracts “, among others. Mrs. Aragón de Bendaña has served as the firm’s general manager and, thanks to her excellent management, the firm has been in constant growth, with a highly qualified staff committed to excellence. Since 1996, partner Julián José Bendaña Aragón joined the firm, and has been standing out as one of the most recognized attorneys in the field of intellectual property.

We have adapted to the constant change of the business world, supporting our clients in finding the most appropriate legal solutions for each moment. The firm distinguishes itself by understanding the needs of its clients, offering personalized service and adding value to its activities.

Nowadays we continue to be the leading firm in Nicaragua in the area of intellectual property, and at the same time, we have been consolidating other areas of service within the civil, commercial and labor fields, as well as litigation and consulting in general. The firm is well positioned to guarantee a pragmatic service that meets the requirements of the most demanding clients.

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