Section 301 tariff on Nicaragua starts at 0%, set to rise to 10% in 2027 and 15% in 2028
USTR's Section 301 tariff on products of Nicaragua that don't originate under CAFTA-DR took effect on Jan 1, 2026 at 0%. It is scheduled to rise to 10% for goods entered from Jan 1, 2027 and 15% from Jan 1, 2028.
From Jan 1, 2026, products of Nicaragua fall under a new heading, 9903.89.01, which adds a Section 301 duty to the regular duty. The rate is phased in:
- 0% for goods entered from Jan 1, 2026 through Dec 31, 2026
- 10% for goods entered from Jan 1, 2027 through Dec 31, 2027
- 15% for goods entered on or after Jan 1, 2028
The duty doesn't apply to "originating goods of Nicaragua under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR)" (U.S. note 29(a)). Antidumping and countervailing duties still apply. Details are on the program page.
USTR determined that Nicaragua's acts, policies and practices related to labor rights, human rights and the rule of law are unreasonable and burden or restrict U.S. commerce (90 FR 48511, Oct 23, 2025), and announced the phased tariff on Dec 10, 2025 (90 FR 57807).