US moves could drive Nicaragua closer to China

Significance The investigation could reportedly see tariffs reintroduced on certain products or Nicaragua’s temporary suspension from the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). Such measures would hit the economy of Nicaragua, which counts the United States as its main trade partner. Impacts Ortega may use Nicaragua’s role as a facilitator of US-bound migration to counter US economic pressure. Increasing authoritarianism will worsen human rights concerns in Nicaragua and encourage political opponents to go into exile. Ortega will continue to face limited pushback from other Central American leaders.