U.S. Tariff Escalation on Nicaraguan Goods Sparks Concern

The U.S. will impose tariffs on Nicaraguan goods over labor and human rights issues, starting at 10% in 2024 and rising to 15% by 2028. These tariffs will apply to goods not covered by the Dominican Republic-Central America-U.S. Free Trade Agreement, escalating amid ongoing concerns about Nicaragua's policy approach.

The United States has announced a phased introduction of tariffs on Nicaraguan goods, citing labor and human rights issues, according to a statement by the U.S. Trade Representative. The initial 10% tariff will take effect on January 1, with plans to increase it to 15% by 2028.

The tariffs will target Nicaraguan imports not included under the existing Dominican Republic-Central America-United States Free Trade Agreement. These new duties will be added to existing tariffs, including a notable 18% reciprocal tariff.

The U.S. Trade Representative indicated that adjustments to the tariff timeline could occur if Nicaragua fails to address the stipulated labor rights concerns. This move follows prior threats by the Trump administration to impose tariffs as high as 100% on Nicaraguan imports.

(With inputs from agencies.)