The Trump administration says that it's planning to hit Nicaragua with 15% tariffs, over alleged human rights abuses that have disrupted U.S. trade. 

Newsweek reports that the tariffs will be phased in gradually, starting at 10% as of January 1, 2027, and then rising to 15% a year later. That will be in addition to the 18% tariffs that are already in place against the Central American country, and will cover all goods not protected under the Dominican Republic-Central America-United States Free Trade Agreement. 

The move comes in the wake of a Section 301 probe opened by the U.S. Trade Representative in December 2024, to investigate allegations of unfair or discriminatory government practices in Nicaragua. In its final report, the USTR concluded that Nicaragua had engaged in "increasingly pervasive abuses of labor rights, human rights and fundamental freedoms," including child and forced labor, human trafficking and workplace abuses.

Nicaragua represents a small but significant trading partner for the U.S., ranking around 60th as the source of U.S. imports. In 2024, 52% of Nicaragua's total exports of $7.52 billion went to the U.S., mostly in the form of apparel and knitwear.

Before the new tariffs are phased in, the USTR will continue to monitor Nicaragua's progress in addressing the issues flagged in the agency's probe. If the country fails to make adequate progress, the USTR will consider moving up the timeline and increasing rates further.