USTR Takes Measured Approach on Nicaragua, a Growing Destination for U.S. Pork

Hear/Download the Audio Report HERE.   

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% in 2027 and to 15% in 2028.  

This announcement represents a much more measured approach than some of the potential actions USTR proposed in October, which included possible suspension of Nicaragua’s CAFTA-DR benefits and tariffs of up to 100%. This is great news for the U.S. pork industry, as U.S. Meat Export Federation (USMEF) Central America Representative Lucia Ruano explains in this audio report. 

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.  

The U.S. holds about 95% of Nicaragua’s imported pork market, and Ruano notes that demand for U.S. pork in Nicaragua has expanded beyond raw material for further processing and now includes a range of pork cuts popular in the retail and foodservice sectors.