Trump Broadens Cuba Sanctions to Cover Nearly All Sectors of Economy

Doohyun Hwang

Summary

The US said it expanded sanctions targeting the Cuban government to cover virtually all sectors of the economy, including energy, defense, metals and mining, financial services and security.
The new measures include a secondary boycott targeting government officials and institutions that support Cuba’s security agencies or are involved in corruption and human rights abuses, as well as third-country companies and individuals that do business with them or facilitate such dealings.
An expert said the move is the strongest action against non-US companies since the Cuba embargo, adding that multinational oil and gas companies, mining firms and banks are no longer beyond the reach of sanctions.

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President Donald Trump signed an executive order broadening sanctions against the Cuban government across virtually the entire economy.

Reuters reported on May 1 that White House officials said the new measures target government officials and entities that support Cuba’s security agencies or are involved in corruption and human rights abuses.

Under the order released by the White House, sanctions could be imposed on any foreign individual or company operating in nearly every part of Cuba’s economy, including energy, defense, metals and mining, financial services and security.

The order also includes secondary sanctions on third-country companies and individuals that do business with sanctioned targets or facilitate those transactions.

Jeremy Paner, a lawyer and former investigator at the Treasury Department’s Office of Foreign Assets Control, called it the strongest action against non-US companies since the Cuba embargo. Multinational oil and gas companies, mining firms and banks that had kept their US and Cuba businesses strictly separate are no longer in a sanctions safe zone, he said.

Cuba immediately condemned the measures, which were announced the same day as May Day events. Foreign Minister Bruno Rodriguez said the US action was unilateral and coercive, violated the UN Charter and amounted to collective punishment of the Cuban people. He added that Washington had no right to sanction third countries or institutions and that Cuba would not yield.

The Trump administration also views Cuba as being linked to Iran and armed groups including Hezbollah. A White House official said Cuba was providing an environment less than 100 miles from US territory that enables hostile foreign intelligence, military and terrorist operations.