Nicaragua Recovers Competitiveness After US Supreme Court Ruling Nullifies 18% Tariffs
Trump announces a new global tariff of 15% that applies to Nicaragua, and the country competes on equal footing with its Central American neighbors.
TL;DR
- The US Supreme Court ruled on February 20th, invalidating Trump's "reciprocal tariffs" policy.
- This ruling eliminated the 18% tariff that was negatively impacting Nicaraguan products.
- President Trump announced a new 15% global tariff on all countries, using Section 122 of the Trade Act of 1974.
- The court found that Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) for unilateral trade levies, stating this power belongs to Congress.
- The new 15% global tariff aims to create a more equitable trading environment for Nicaragua.
- Nicaragua's exports to the US reached $4.037 billion in 2025, accounting for 46.3% of its total exports.
- The US Trade Representative (USTR) has scheduled additional progressive tariffs on Nicaragua starting in 2027 and 2028 due to human rights violations.