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The U.S. is proposing 100 percent tariffs on imports from Nicaragua, among other trade measures, under a Section 301 investigation that began last December, according to a Federal Register filing.
The investigation, conducted by the Office of the United States Trade Representative, was conducted to determine whether Nicaragua’s labor rights, human rights, and rule of law practices, policies, and practices adversely affect U.S. trade.
A report on the probe’s findings recommends the USTR consider the following actions:
- Suspend all or some apps Dominican CAFTA-DR (CAFTA-DR) benefits for Nicaragua, including tariff concessions and Gathering Nicaragua content for other CAFTA-DR partners, immediately or over a period of up to 12 months
- Applying 100% tariffs on all Nicaraguan imported goods, immediately or in stages during a maximum period of 12 months.
- Apply up to 100% tariffs on some Nicaraguan imports immediately, with tariffs on selected sectors for a period of up to 12 months.
The USTR requested comment on whether increasing tariffs or eliminating concessions in certain sectors would help eliminate any economic harm to US parties, including small and medium-sized businesses. The deadline for written comments on the proposed action is November 19.
Section 301 of the Trade Act of 1974 is one of President Donald Trump’s tools regarding trade partners.
In Trump’s first term, he used a Section 301 investigation to impose tariffs on imports from China, which former President Joe Biden maintained. Trump continues to use Section 301 for tariffs on Chinese products and recently announced plans to impose 100 percent tariffs on ship-to-shore cranes and cargo-handling equipment related to China.
earlier this year, The Trump administration launched Brazil’s Section 301 review to determine whether the country’s policies harm or restrict U.S. trade. At the time, Trump said the United States would impose a 50 percent tariff on imports from Brazil starting August 1.
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