On January 29, 2026, President Trump signed Executive Order 14380, “Addressing Threats To the United States by the Government of Cuba” (the “Executive Order”), in which he declared a national emergency with respect to Cuba and authorized the United States to impose new tariffs on imports from countries that directly or indirectly supply oil to the Government of Cuba. The Executive Order is accompanied by a White House Fact Sheet outlining the administration’s national security and foreign policy rationale, which also explains how the action fits within a broader escalation of pressure on Havana.
The Executive Order represents a significant development at the intersection of U.S. sanctions and tariffs, with potentially wide ranging consequences for energy suppliers, global traders, logistics providers, and companies importing goods into the United States from jurisdictions that maintain commercial ties with Cuba.
- National Emergency Determination Under the IEEPA
President Trump invoked the International Emergency Economic Powers Act (“IEEPA”) and the National Emergencies Act, to declare that the “policies, practices, and actions” of the Government of Cuba constitute an “unusual and extraordinary threat” to U.S. national security and foreign policy.
The Executive Order cites, among other things:
- Cuba’s alignment with and support for hostile foreign governments and non-state actors, including Russia, China, Iran, Hamas, and Hezbollah;
- The presence in Cuba of foreign military and intelligence capabilities, including Russia’s largest overseas signals intelligence facility; and
- Alleged human rights abuses, political repression, and regional destabilization attributed to the Government of Cuba.
Based on these findings, President Trump formally declared a national emergency with respect to Cuba effective January 29, 2026.
- Core Measure: Tariffs Targeting Countries Supplying Oil to Cuba
The Executive Order establishes a mechanism to impose additional tariffs on goods imported into the United States from third countries that sell or otherwise provide oil to Cuba, whether directly or indirectly. Based on reporting in the Financial Times, the leading exporters of oil to Cuba in recent years have been Venezuela, Mexico Russia, and Algeria, with Mexico becoming the primary supplier of oil to the island in 2025 following a significant drop in Venezuelan oil exports.
Key features of the tariff framework include:
- Country based targeting: The tariffs would apply to imports from countries determined to be providing oil to Cuba, not solely to energy related products.
- Agency determinations: The Secretary of State, in consultation with the Secretary of Commerce and other agencies, is authorized to identify covered countries and recommend appropriate tariff levels.
- Discretion and scalability: The President retains discretion to impose, modify, suspend, or escalate tariffs based on changing circumstances, including retaliatory actions or policy shifts by affected countries or by Cuba itself.
The approach mirrors earlier measures from the Trump administration aimed at deterring energy exports to sanctioned regimes by leveraging U.S. import tariffs rather than traditional blocking sanctions. For instance, as previously reported on this blog, President Trump signed an executive order in March 2025 authorizing the imposition of tariffs on countries that import oil from Venezuela, but no tariffs have been imposed on any countries to date. The Executive Order also builds on the extensive U.S. sanctions regime applicable to Cuba under statutes such as the Helms Burton Act and sanctions regulations administered by the Treasury Department’s Office of Foreign Assets Control.
- Potential Trade and Compliance Implications
Although no tariffs have yet been imposed under the Executive Order, the framework creates immediate risk and uncertainty for companies operating across global supply chains.
Key considerations include:
- Supply chain exposure: Importers into the United States may face higher duties on goods sourced from countries designated as oil suppliers to Cuba, even if the imported products are unrelated to the energy sector.
- Energy and shipping compliance: Oil producers, traders, shipping companies, insurers, and financial institutions will need to closely assess whether transactions could be viewed as indirectly supplying oil to Cuba.
- Geopolitical sensitivity: Countries in Latin America and beyond that maintain energy trade with Cuba may now face collateral trade consequences, raising the stakes for diplomatic and commercial decision making.
The administration has indicated that implementing guidance and further agency action will be forthcoming; the scope and practical impact of the tariffs may evolve over time.
- Key Takeaways for Companies
The Executive Order introduces a novel tariff based deterrence mechanism that may affect a broad range of industries beyond energy.
- Companies should begin mapping exposure to countries that supply oil to Cuba, even indirectly, as part of trade risk assessments.
- Multinational organizations should monitor forthcoming State and Commerce Department guidance clarifying how countries will be designated and how tariffs may be applied.
- The action underscores the continued convergence of sanctions policy and tariffs as tools of U.S. foreign policy.
We will continue to monitor developments, including agency guidance and potential tariff designations, and assess implications for U.S. importers, exporters, and global supply chains.
