US to impose tariffs on Nicaragua goods over labor 'abuses'

(AFP) The United States said Wednesday that it will impose new tariffs on certain Nicaraguan goods starting in 2027, over what it found to be labor and human rights abuses.

The duties will be phased-in over two years, at 10 percent starting January 2027 and rising to 15 percent in January 2028, the US Trade Representative's (USTR) office said.

These will stack on an 18 percent "reciprocal" tariff that President Donald Trump imposed earlier this year over what his administration deemed were unfair trade practices.

The move follows a USTR investigation initiated last year over Nicaragua's labor and human rights practices, as well as rule of law.

It found that Nicaragua "has engaged in increasingly pervasive abuses of labor rights, as well as human rights and fundamental freedoms, and has systematically dismantled rule of law protections against arbitrary government action."

The USTR has since determined that Nicaragua's policies and practices "are unreasonable and burden or restrict US commerce."

This is because it creates "unfair competition against US workers and businesses through denial of basic labor rights resulting in artificially low-cost Nicaraguan products," among other issues.

The new levy will apply to imported goods from the country not originating under the Dominican Republic-Central America-United States Free Trade Agreement.

"Should Nicaragua show a lack of progress in addressing these issues, this timeline and these rates may be modified," the USTR said.