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USTR proposes 100% tariffs on Nicaragua under Section 301 of Trade Act

23 Oct '25

1 min read

USTR proposes 100% tariffs on Nicaragua under Section 301 of Trade Act

Pic: Shutterstock

Insights

The USTR recently concluded under Section 301 of the Trade Act of 1974 that Nicaragua's acts, policies and practices related to abuses of labour rights, human rights and fundamental freedoms and dismantling of the rule of law are unreasonable and burden or restrict US commerce.
Hence, it proposed a range of responsive actions in a report that details evidence and findings supporting the determination.

The US Trade Representative (USTR) recently concluded under Section 301 of the Trade Act of 1974 that Nicaragua’s acts, policies and practices related to abuses of labour rights, human rights and fundamental freedoms and dismantling of the rule of law are unreasonable and burden or restrict US commerce.

As a result, it proposed a range of responsive actions in a report that details evidence and findings supporting the Section 301 determination.

The actions include suspending the application of all Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) benefits to Nicaragua, including tariff concessions and cumulation of Nicaraguan content for other CAFTA-DR partners, immediately or phased in over a period of time up to 12 months.

Other actions are applying tariffs up to 100 per cent on all Nicaraguan imports, immediately or phased in over a period of up to 12 months and applying tariffs up to 100 percent on some Nicaraguan imports immediately, with tariffs for selected sectors phased in over a period of time up to 12 months.

Fibre2Fashion News Desk (DS)

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