Donald Trump has signed an executive order laying the groundwork for tariffs on goods imported from countries that provide oil to Cuba, the White House has said. The order, which declares a national emergency, instructs the secretaries of state and commerce to assess potential tariffs against nations that sell or supply oil to the island nation. The White House has not yet specified tariff rates, but the move escalates Trump's long-standing campaign to pressure the Cuban government.
The White House cited Cuba's ties to hostile powers, including Russia, Hamas and Hezbollah, as justification for the policy, describing it as a response to an 'unusual and extraordinary threat to US national security'. Cuba, a Caribbean island of around eight million people, has been ruled by the Communist party for six decades and has an economy similar in size to Rhode Island.
Mexico, a major oil supplier to Cuba, has come under particular pressure. President Claudia Sheinbaum has insisted that state oil company Pemex will continue to meet contractual obligations and may supply oil for humanitarian reasons. However, Sheinbaum acknowledged this week that shipments have paused for now. Mexican supplies of around 20,000 barrels per day last year are dwarfed by the 70,000 barrels per day Venezuela provided before US forces arrested Venezuelan President Nicolás Maduro on drug trafficking charges, cutting off Cuba's primary oil source.
Cuba faces severe economic strain, with rationed gasoline and limited daily electricity blackouts. The country has only 15 to 20 days of oil reserves, according to the Financial Times. Tourist numbers have also fallen amid the turmoil. Trump said this week: 'Cuba will be failing pretty soon. They got their money from Venezuela. They got the oil from Venezuela. They're not getting that any more.'
