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US Tariffs on Pharmaceutical Products from Nicaragua — 10% (2026)

Tariff Rate Breakdown

10%

Section 122 Base

10%

Total Effective Rate

CAFTA-DR — qualifying goods may enter duty-free

Nicaragua is a significant source of pharmaceutical products imports into the United States, with approximately $4.5B in total bilateral trade.

The current tariff framework for pharmaceutical products from Nicaragua reflects the post-SCOTUS landscape: a 10% Section 122 tariff replaced the previously higher IEEPA rates after the Court's February 2026 ruling.

The Section 122 tariff is subject to a 150-day statutory time limit and is set to expire approximately July 24, 2026, unless Congress acts to extend or replace it. Importers should monitor legislative developments closely as this deadline approaches.

Pharmaceutical Products (HTS Chapter 30) generally enter duty-free at the MFN level, with the Section 122 tariff as the primary duty. No additional Section 232 or Section 301 surcharges apply to most products in this category from Nicaragua.

Nicaragua is party to the CAFTA-DR, which may provide preferential or duty-free access for qualifying pharmaceutical products. Importers should verify rules of origin requirements to take advantage of preferential rates.

Key products in HTS Chapter 30 imported from Nicaragua include Vaccines, Antibiotics, Insulin, Bandages, Diagnostic reagents, and Blood products.

Common Products in Chapter 30

VaccinesAntibioticsInsulinBandagesDiagnostic reagentsBlood productsPharmaceutical dosage formsFirst-aid kits

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Frequently Asked Questions

What is the current tariff rate on pharmaceutical products from Nicaragua?

As of March 2026, pharmaceutical products from Nicaragua face a base tariff of 10% under Section 122. The effective rate can be up to 10%.

Will the tariff on pharmaceutical products from Nicaragua change?

The Section 122 tariff of 10% expires approximately July 24, 2026, unless Congress extends it. Monitor legislative developments for updates.

How did the Supreme Court ruling affect pharmaceutical products imports from Nicaragua?

The Supreme Court's February 20, 2026 ruling struck down IEEPA reciprocal tariffs as exceeding presidential authority. The president signed a replacement 10% tariff under Section 122 the same day, effective February 24. Qualifying goods under CAFTA-DR may still enter duty-free.