On a 21 October deadline, Sourcing Journal reports on recent labor abuse reports in Nicaragua:
Jasmin Malik Chua| October 21, 2025
Writing in an email, Julia Hughes, president of the United States Fashion Industry Association, described the situation as a complex one. In her comment to Tai’s office in December, she had asked USTR to recognize the importance of an integrated Central America apparel and textile supply chain.
Hughes also questioned whether Section 301 was the right vehicle for sanctions when there are other statutory authorities that “explicitly” penalize bad actors, such as the Global Magnitsky Act. She said that despots foster deplorable conditions because they want to rule as despots, not because they seek to “burden or restrict U.S. commerce” as required by Section 301.
“USFIA strongly condemns the ongoing violations of labor rights and human rights in Nicaragua, and strongly condemns the erosion of the rule of law within the country,” Hughes said. “[But] we urge USTR to consider whether tariffs on Nicaraguan-origin apparel would punish the Ortega-Murillo regime or, in fact, would have the opposite effect of weakening independent institutions within the country.”