USTR recently announced that the U.S. will impose tariffs on all imported Nicaraguan goods that are not originating under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). The tariff will initially be set at zero, but is set to increase to 10% on Jan. 1, 2027, and to 15% on Jan. 1, 2028.

This announcement represents a much more measured approach than some of the potential actions USTR proposed in October, including the possible suspension of Nicaragua's CAFTA-DR benefits and tariffs of up to 100%.

Why it Matters: Duty-free access through CAFTA-DR has helped make Nicaragua a rapidly growing destination for U.S. pork, ranking 13th among all export markets this year. Exports will approach 20,000 mt in 2025, more than doubling over the past five years and up from less than 1,500 mt a decade ago. Export value is estimated at $68.5 million - up 180% since 2020.