USTR Recommends Section 301 Tariffs for Nicaragua Products

The Office of the U.S. Trade Representative announced that it has issued a Section 301 determination against Nicaragua in response to what it calls “unreasonable acts, policies, and practices” that burden or restrict U.S. commerce. According to the USTR’s official report, Nicaragua’s government has engaged in systemic labor rights violations, suppression of fundamental freedoms, and a dismantling of the rule of law.

Proposed Trade Measures

Following its investigation, the USTR is proposing a series of potential trade actions, including:

  • The suspension, withdrawal, or prevention of benefits for Nicaragua under the Dominican Republic–Central America–U.S. Free Trade Agreement (CAFTA-DR).

  • The imposition of additional duties of up to 100% on some or all products imported from Nicaragua.

If implemented, these measures could have a significant impact on U.S. importers sourcing textiles, apparel, and agricultural products from Nicaragua, key sectors that rely heavily on duty-free treatment under CAFTA-DR.

Radius Insight: What This Means for Importers

Importers and U.S. manufacturers who rely on Nicaragua-origin goods could face steep cost increases if tariffs take effect. Supply chain and procurement teams should begin evaluating exposure now to avoid unexpected disruptions.

Radius International recommends:
– Reviewing current supplier networks in Nicaragua and neighboring CAFTA-DR countries.
– Identifying alternate sourcing or routing options through unaffected trade regions.
– Preparing for potential customs reclassification or valuation adjustments.
– Staying informed as the USTR review process unfolds.

Radius International’s compliance and operations teams are tracking this development closely and are ready to assist importers in preparing for potential changes in duty rates, documentation requirements, and trade agreements.

Radius International remains committed to keeping our clients informed as trade policy evolves, ensuring your cargo moves compliantly and cost-effectively, no matter the shifts.