Industry sources and trade officials say the U.S. government’s newly announced 15% tariff on select Nicaraguan imports is not expected to apply to cigars. The tariffs, announced as part of a U.S. Trade Representative investigation into Nicaragua’s human rights violations, will apply only to goods that aren’t covered by the CAFTA-DR trade agreement. CAFTA-DR protections should shield qualifying Nicaraguan cigars that meet the agreement’s “Rules of Origin.”

The tariff will be phased in: 0% additional in 2026, 10% in 2027, and 15% in 2028. Those increases would be on top of an existing 18% Trump-era tariff that remains tied up in litigation. If both measures end up applying, some products could face a combined 33% tariff by 2028, though cigars are widely expected to remain exempt so long as CAFTA-DR protections stand.

This article was adapted from an original report published on tobaccoreporter.com. All rights belong to the original publisher.