Since Nicaragua established diplomatic relations with China in 2021, imports from the Asian giant have grown steadily, putting Beijing on track to overtake the United States as the country’s main supplier of imported goods.
However, a nearly 20% increase in Nicaragua’s purchases from the United States during the first five months of 2026 pushed China back into second place, leaving a gap of more than $159 million, largely driven by the surge in the country’s oil import bill. When imports destined for Nicaragua’s free trade zones are included, the gap widens even further.
According to foreign trade data released by the Central Bank of Nicaragua (BCN), the country imported $4.39 billion worth of goods between January and May 2026, while companies operating in free trade zones imported an additional $844.4 million in raw materials. Total imports reached $5.23 billion, with 22% coming from the United States and 17% supplied by China.
The BCN reported that the United States exported $969.3 million worth of goods to Nicaragua during the period. Of that total, $524.9 million corresponded to petroleum, fuels and lubricants. That figure was $153 million higher than spending on those products during the same period a year earlier. Most of the increase occurred in April and May, when monthly purchases nearly doubled compared with the preceding months.
Oil import bill surged in April and May
Official data show that between January and May 2025, Nicaragua spent an average of $74.3 million per month on petroleum imports. During the same period in 2026, that average climbed to $104.9 million per month.
The increase was largely driven by April, when Nicaragua spent $138 million on petroleum, fuels and lubricants—almost 70% more than the $82 million recorded in April 2025.
The jump was even more pronounced in May. During that month, Nicaragua imported $151.8 million worth of petroleum products, representing a 151% increase compared with the $63.9 million spent in May of the previous year.
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The spike coincided with heightened volatility in global oil and fuel prices triggered by the military conflict between the United States and Iran. Since February, Iran has repeatedly closed the Strait of Hormuz, a strategic shipping lane through which a significant share of the world’s crude oil exports passes, reducing global supply and driving prices higher.
In addition to petroleum, fuel and lubricant purchases from the United States, Nicaragua imported smaller volumes of energy products from other countries, including $65.2 million worth of electricity. Altogether, the country spent $768.5 million on its energy import bill during the first five months of the year.
Rising crude prices slow China’s advance
Volatility in global oil prices over the past several months has also reduced the additional windfall profits generated by the Ortega-Murillo regime’s policy of freezing domestic fuel prices.
Before the outbreak of the U.S.-Iran conflict, West Texas Intermediate (WTI) crude—the benchmark used by Nicaragua—was trading at around $60 per barrel. During the conflict, however, prices climbed above $100 per barrel. Even so, they have yet to reach the $115 per barrel recorded in April 2022, when the government first imposed the fuel price freeze.
In addition to the $969.3 million worth of goods the United States exported to Nicaragua during the first five months of the year, companies operating in Nicaragua’s free trade zones imported another $183.7 million in raw materials from the U.S. As a result, total imports from the United States reached $1.153 billion between January and May, accounting for 22% of Nicaragua’s overall imports.
During the same period, China exported $872.3 million worth of goods to Nicaragua, while free trade zone companies imported an additional $31.1 million in Chinese raw materials. Total imports from China therefore amounted to $903.4 million, or 17% of Nicaragua’s total imports.
That left China $249.6 million behind the United States, preventing the Asian giant from overtaking its rival as Nicaragua’s largest foreign supplier.
Other imports
The widening gap between U.S. and Chinese imports came even as Nicaragua amended its Free Trade Agreement (FTA) with China in May. The agreement, which has been in force since January 2024, was revised to eliminate tariffs on roughly 50 Chinese products. Some of those goods have traditionally been imported from the United States, meaning the measure could eventually reduce imports from the U.S. market.
Mexico ranked as Nicaragua’s third-largest supplier, with total exports to the country reaching $406.2 million. Honduras followed, supplying $312.8 million worth of raw materials to companies operating in Nicaragua’s free trade zones.
Consumer goods—including food, medicines, clothing, footwear, household items, vehicle tires and other products—remained Nicaragua’s largest import category. Between January and May, the country spent $1.374 billion on those purchases.
Intermediate goods, which include agricultural and industrial inputs, construction materials and other production supplies, ranked second at $1.244 billion.
Capital goods—including transportation equipment, machinery, spare parts and accessories—accounted for $999.2 million in imports, while raw materials for free trade zone companies totaled $844.4 million, bringing Nicaragua’s total imports to $5.234 billion during the first five months of 2026.
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