US Considers Sweeping Tariffs on Nicaragua Over Rights Concerns

Potential 100% Tariffs Under Consideration

The United States is reportedly considering imposing 100% tariffs on imports from Nicaragua, according to a recent Federal Register filing. The proposed trade actions stem from a Section 301 investigation that began in December 2024, sources indicate. The Office of the United States Trade Representative (USTR) has been examining whether Nicaragua’s acts, policies and practices related to labor rights, human rights and the rule of law have negatively impacted U.S. commerce.

Potential 100% Tariffs Under Consideration
Investigation Findings and Recommendations
Public Comment Period Open
Historical Context of Section 301 Authority
Potential Economic Impact
Next Steps in the Process

Investigation Findings and Recommendations

The USTR’s investigation has concluded with a report recommending several potential actions, according to documents reviewed. While the full report details remain confidential, analysts suggest the findings point to significant concerns about Nicaragua’s compliance with international standards. The report reportedly recommends that USTR consider imposing increased duties or withdrawing concessions on certain sectors to address what investigators found to be harmful impacts on U.S. economic interests.

Public Comment Period Open

The USTR office is currently seeking public comments regarding whether increased duties would help eliminate any economic harm done to U.S. parties, including small- and medium-sized businesses. According to the Federal Register notice, the deadline for written comments on the proposed action is November 19, 2025. This comment period allows affected businesses and stakeholders to provide input before any final decision is made.

Historical Context of Section 301 Authority

Section 301 of the Trade Act of 1974 has been used by multiple administrations as a tool to address unfair trade practices, trade analysts note. During President Donald Trump’s first term, he utilized a Section 301 investigation to enact tariffs on imports from China, which former President Joe Biden maintained. Trump continues to leverage Section 301 authority, recently announcing plans to impose 100% tariffs on China-linked ship-to-shore cranes and cargo handling equipment, according to trade policy experts.

Potential Economic Impact

While the specific sectors that might be affected by the proposed Nicaragua tariffs have not been detailed in public documents, trade analysts suggest that such significant tariff increases could substantially impact bilateral trade between the two nations. The USTR is reportedly examining whether these measures would effectively address the identified concerns while minimizing disruption to U.S. businesses and consumers.

Next Steps in the Process

Following the November comment deadline, the USTR will review all submissions before making a final determination on whether to implement the proposed tariffs, according to standard procedure. The office may modify its recommendations based on the feedback received, analysts suggest. The timeline for a final decision remains uncertain, though trade experts anticipate movement in early 2026 based on typical Section 301 proceeding schedules.