U.S. Targets Nicaragua with Trade Tariffs

The United States Trade Representative has proposed tariffs against Nicaragua citing the country's unreasonable labor and human rights policies, which affect U.S. commerce. Measures include suspending Nicaragua's benefits under CAFTA-DR. Actions could be immediate or phased over 12 months.

The United States Trade Representative has moved to impose tariffs and other measures against Nicaragua, following a determination that the nation's policies on labor and human rights are detrimental to U.S. commerce. The announcement was made on Monday, highlighting severe concerns over the Central American nation's practices.

According to a statement released by the trade representative's office, these new measures are actionable and propose a significant policy shift in response to what the officials deem unacceptable actions by Nicaragua. The tariffs aim to counteract the economic repercussions felt by U.S. businesses.

Furthermore, the trade representative's proposal includes suspending all benefits that Nicaragua enjoys under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). This suspension could be implemented immediately or be gradually phased in over the next 12 months, presenting a stark warning against the Nicaraguan establishment.

(With inputs from agencies.)