The Office of the United States Trade Representative has announced that “Nicaragua’s acts, policies, and practices related to abuses of labor rights, abuses of human rights and fundamental freedoms, and dismantling of the rule of law are unreasonable and burden or restrict U.S. commerce.”
USTR is exploring a range of responses, including tariffs of up to 100 percent, and potential suspension, withdrawal, or prevention of application of benefits under the Dominican Republic‑Central America‑United States Free Trade Agreement, according to the Cigar Rights of America trade group.
With Nicaragua being one of the leading countries of origin for premium handmade cigars imported into the United States, any suspension of the free trade agreement benefits or new tariffs pose significant implications for the premium cigar supply chain, affecting manufacturers, importers, retailers, and consumers.The USTR’s full report on Nicaragua does not discuss the cigar sector specifically, and CRA fully intends to advocate for premium cigars to be excluded from any penalties considered by the USTR.
