The U.S. is proposing 100% tariffs among other trade actions on imports from Nicaragua based on a Section 301 investigation that began last December, according to a Federal Register filing.
The probe, conducted by the Office of the United States Trade Representative, aimed to examine whether Nicaragua’s acts, policies and practices related to labor rights, human rights and the rule of law harmfully impact U.S. commerce, per the notice.
A report on the probe's findings recommends the USTR consider the following actions:
- Suspend the applications of all or some Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) benefits to Nicaragua, including tariff concessions and the cumulation of Nicaraguan content for other CAFTA-DR partners, immediately or phased in over a period of up to 12 months
- Applying up to 100% tariffs on all Nicaraguan imports, immediately or phased in over a period of up to 12 months
- Applying up to 100% tariffs on some Nicaraguan imports immediately, with tariffs for selected sectors phased in over a period of up to 12 months
The office of the USTR is requesting comments regarding whether increased duties or withdrawing concessions on certain sectors would help eliminate any economic harm done to U.S. parties, including small- and medium-sized businesses. The deadline for written comments on the proposed action is Nov. 19.
Section 301 of the Trade Act of 1974 is one of President Donald Trump's many tools on trading partners.
During Trump’s first term, he used a Section 301 investigation to enact tariffs on imports from China, which former President Joe Biden maintained. Trump is still leveraging Section 301 for tariffs on products from China, and recently announced plans to impose 100% tariffs on China-linked ship-to-shore cranes and cargo handling equipment.
Earlier this year, the Trump administration launched a Section 301 investigation of Brazil to examine whether the country’s policies harm or restrict U.S. commerce. At the time, Trump said the U.S. would begin charging a 50% tariff on imports from Brazil starting Aug. 1.
