The U.S. government’s newly announced 15% tariff on select Nicaraguan imports is not expected to apply to cigars, according to industry sources and trade officials. The tariffs—introduced as part of a U.S. Trade Representative (USTR) investigation into Nicaragua’s human rights violations—will apply only to products not covered by the CAFTA-DR trade agreement, which shields qualifying Nicaraguan cigars that meet “Rules of Origin” requirements.
Under the schedule, affected goods will face 0% additional tariff in 2026, 10% in 2027, and 15% in 2028, on top of an existing 18% Trump-era tariff that remains tied up in ongoing litigation. Should both apply, some products could face 33% tariffs by 2028, though cigars are widely expected to remain exempt as long as CAFTA-DR protections stand.