The United States is considering tariffs of up to 100% on imports from Nicaragua, a move that could choke the flow of Nicaraguan green coffee to U.S. traders and roasters.
On Monday, Oct. 20, the Office of the U.S. Trade Representative (USTR) issued a formal finding under Section 301 of the Trade Act of 1974 that the Nicaraguan government’s labor rights, human rights policies and rule of law practices are “unreasonable” and place a burden on U.S. commerce.
In its notice, the office broadly outlined three potential punitive measures: suspend all CAFTA-DR free trade benefits for Nicaragua; suspend some benefits; or apply new tariffs of up to 100%. According to an explanatory document, those tariffs could take effect immediately or be phased over 12 months, and they could apply to all goods or just some goods.
Goods from Nicaragua, including green coffee, are already subject to an 18% tax under Donald Trump’s “reciprocal tariffs” scheme.
In conjunction with its notice, the U.S. trade office has opened up a public comment window through Nov. 19, seeking input from potentially affected parties.
Felipe Gurdián, the sourcing manager for U.S.-based importing cooperative Cooperative Coffees, told DCN that additional tariffs on Nicaraguan coffees would likely “further kneecap U.S. coffee roasting businesses that are already struggling.”
Coffees from nearly all the world’s major producing countries are now subject to a minimum 10% tariff — a tax paid by U.S. importers — while additional target tariffs, such as the 50% on Brazil, have rattled the world’s green coffee market. In addition to the new tariff threat affecting Nicaragua, Trump this week threatened a politically motivated tariff increase on goods from Colombia, yet another key Latin American coffee supplier to the U.S.
Despite bipartisan efforts to exempt coffee from tariffs — considering the U.S. cannot produce coffee at anywhere near the scale needed to meet demand — the Trump taxes have continued to haunt importing companies, which have in turn passed costs down to roasters.
“A 100% tariff on Nicaraguan coffee will only serve to punish roasters by limiting choice,” Gurdián told DCN. “Above all, those who stand to suffer the most from a decision like this are the Nicaraguan people and producers, who have suffered enough under an authoritarian regime.”
The United States is by far the largest importer of Nicaraguan coffee, receiving approximately half of the country’s total coffee exports, or the equivalent of about 1.2 million 60-kilogram bags.
The investigation into the human rights, labor rights and rule-of-law practices under the Ortega administration in Nicaragua was launched during the final months of the Joseph Biden administration, in December 2024. The 46-page report describes repression of independent unions, abuses of fundamental freedoms, arbitrary seizures of property and other violations of trade conditions.
The final determination on the U.S. and Nicaragua trade status will be made by the U.S. trade office under the direction of President Trump.
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Nick Brown
Nick Brown is the editor of Daily Coffee News by Roast Magazine.
