In April of this year, the United States imposed an 18% tariff on all Nicaraguan exports. This action took effect on August 7, 2025, and is the highest rate assigned to a Central American country.
This technical analysis details its scope, procedure, and implications for commercial operators.
I- Scope and procedure
The tariff, applied under Chapter 99 of the Harmonized Tariff Schedule (HTS), is levied on the CIF (cost, insurance, and freight) value of the goods, including expenses such as handling fees. The rules of origin of the DR-CAFTA determine whether a product is “originating in Nicaragua,” and US authorities may require additional verification.
II- Affected sectors and macroeconomic impact
In 2024, exports to the US reached USD 1,623.7 million (38.7% of the national total), with an additional USD 2,044.9 million from free trade zones. Key sectors include:
- Textiles and clothing: US$2,012.8 million (80.1% to the US).
- Gold: US$793.1 million.
- Beef: US$262 million.
- Coffee: US$219.8 million.
The additional tariff cost could reach USD 582.5 million per year, affecting GDP, tax revenue, and private investment. Free trade zones, with more than 125,000 direct jobs, face risks from loss of competitiveness vis-à-vis countries with 10% tariffs (e.g., Guatemala, Honduras).
III- Adaptation strategies
Nicaraguan exporting companies are exploring various measures in response to this tariff change:
- Market diversification: Increase exports to Asia, especially China.
- Process optimization: Improve efficiency to mitigate reduced margins.
- Customs compliance: Ensure documentation complies with DR-CAFTA.
IV- Medium-term risks and tax implications
An investigation under Section 301 or adjustments to DR-CAFTA could exacerbate the impact. Companies should review tariff classifications, evaluate margins, and explore opportunities to renegotiate and/or update commercial contracts.
The tariff requires adjustments to production costs and financial statements, with possible tax deductions for export expenses. We recommend consulting with tax advisors to optimize strategies.
V- Conclusion
The 18% tariff represents a significant challenge. Strategic planning and operational adaptation will be key to maintaining competitiveness in the US market.