In a Federal Register Notice (FRN) published on December 12, 2025, the Office of the United States Trade Representative (USTR) announced that it will impose a phased in Section 301 on all Nicaraguan goods not originating under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).

Effective January 1, 2026, the United States will impose a zero percent tariff that will increase to 10 percent on January 1, 2027, and to 15 percent on January 1, 2028. These tariffs would stack with existing tariffs such as the 18 percent reciprocal tariff on Nicaragua.

The Federal Register Notice can be found here:
https://www.federalregister.gov/public-inspection/2025-22690/nicaraguas-acts-policies-and-practices-related-to-labor-rights-human-rights-and-fundamental-freedoms

USTR’s press release on this Section 301 action can be found here:
https://ustr.gov/about/policy-offices/press-office/press-releases/2025/december/ustr-section-301-action-nicaraguas-acts-policies-and-practices-relating-labor-rights-human-rights