Nicaragua: Trade Partnerships

Nicaragua's trade is dominated by the United States, which has long stood as the country's largest trading partner on both the export and import sides. As of 2026, the United States receives roughly half of Nicaragua's exports and supplies close to a third of its imports, a relationship anchored by the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which took effect for Nicaragua in April 2006 and expanded access for the country's agricultural and manufactured goods. Beyond the United States, Mexico, Honduras, Guatemala, and China are among Nicaragua's other significant trading partners, reflecting both regional Central American commerce and growing ties to Asian suppliers.

Nicaragua's principal exports include coffee, beef, gold, textiles, and agricultural products such as peanuts and sugar, while its imports lean heavily on fuel, machinery, consumer goods, and manufacturing inputs. Remittances from Nicaraguans working abroad, particularly in the United States, add a further layer to the bilateral economic relationship, supplementing merchandise trade with a substantial flow of personal transfers back to Nicaraguan households.

As of early 2026, the trade relationship has also become entangled with political tensions. Citing concerns over labor rights, human rights, and the rule of law during the presidency of Daniel Ortega, the United States Trade Representative announced a phased tariff action on Nicaraguan goods that do not qualify as originating under CAFTA-DR, with additional duties beginning at zero percent in 2026 and scheduled to rise in subsequent years. Goods that meet CAFTA-DR's origin requirements remain exempt from the new duties, leaving the core of the free trade agreement intact even as the broader relationship faces added strain.