Nicaragua Section 301 tariff rises to 10% on January 1, 2027 and 15% in 2028
USTR's Section 301 action on Nicaragua phases in a tariff on goods that do not originate under CAFTA-DR: 0% from January 1, 2026, 10% from January 1, 2027 and 15% from January 1, 2028, reported under HTS heading 9903.89.01.
What this affects
| 9903.89.01 | Products of Nicaragua not originating under CAFTA-DR |
Codes are a starting point, not a classification. Confirm your own 10-digit HTS before you rely on a rate, using our HTS classification guide.
Key dates
- January 1, 2027Nicaragua Section 301 rate rises to 10%Next
- January 1, 2028Nicaragua Section 301 rate rises to 15%
The update
The notice published December 29, 2025 implements USTR's action in its investigation of Nicaragua's labor rights, human rights and rule of law practices. It creates HTS heading 9903.89.01 for products of Nicaragua.
Goods that originate under CAFTA-DR are not covered. For other Nicaraguan goods the rate is zero in 2026, 10% for goods entered on or after January 1, 2027, and 15% on or after January 1, 2028.
Impact
Apparel and other goods made in Nicaragua with non-CAFTA-DR inputs move from no extra duty to 10% on January 1, 2027. Qualifying under CAFTA-DR rules of origin is the way to stay out of it.
What to watch
The tariff is keyed to CAFTA-DR origin, not just country of manufacture. Yarn and fabric sourcing decides apparel origin under the agreement's rules.
How to prepare
- 1Check CAFTA-DR origin on every Nicaraguan SKU
- 2Price 2027 entries at 10 percent where origin fails
- 3Plan for 15 percent in 2028
Sources
- Notice of Implementation of Action: Nicaragua's Acts, Policies, and Practices Related to Labor Rights, Human Rights and Fundamental Freedoms, and the Rule of Law · Federal Register · December 29, 2025
We summarize published reporting and official notices. Always confirm rates and dates against the Federal Register or your customs broker before acting on them.