The US Trade Representative plans phased tariff increases on Nicaraguan imports from 2027 due to labour and human rights concerns. Tariffs will start at zero in 2026, rising to 10% in 2027 and 15% in 2028. This decision aims to balance action with limited disruption for US businesses.

The American Apparel & Footwear Association supports the decision not to extend additional tariffs to CAFTA-DR qualifying goods, citing risks to regional supply chains. They emphasize the importance of holding trading partners accountable while protecting free trade agreements that support American jobs, especially in Nicaragua’s textile and apparel industry.

Industry groups warn of significant job losses if sweeping trade actions disrupt deeply interconnected supply chains under CAFTA-DR. They urge USTR to pursue a targeted approach to address violations, allowing companies time to adjust sourcing strategies and minimise disruption across the region. The focus is on addressing abuses without harming the industry.

Read more at Yahoo Finance: US apparel sector backs Nicaragua tariffs on supply chain risks