On January 20, 2025, just hours after being sworn in, President Donald Trump signed an executive order reversing 78 actions of the previous administration, including several concerning Cuba.
This decision marks a return to the policy of firmness towards the Caribbean island, reversing the efforts at openness initiated by the Biden administration.
Main measures taken by Trump
Cuba re-listed as a state sponsor of terrorism
Cancellation of the revocation of Presidential National Security Memorandum 5 (NSPM-5)
Reinstatement of the "Cuba Restricted List".
These actions reverse the decisions taken by Joe Biden in his final days in office, including the plan to ease certain sanctions against Cuba.
Economic consequences for Cuba
The reinstatement of sanctions will have several negative impacts on the Cuban economy:
Hindrance to foreign investment
Reinforcement of US embargo
Limitations in the health sector
Impacts on tourism and foreign trade
The Cuban economy, already weakened by the COVID-19 pandemic and structural weaknesses, is likely to suffer a further blow. In 2020, Cuba's real GDP fell by 10.9%.
International reactions
The Cuban government strongly criticized the decision. Cuban Foreign Minister Bruno Rodríguez called the re-listing of Cuba as a state sponsor of terrorism a "tool of political coercion" rather than a genuine effort to combat terrorism.
Outlook
Trump's decision considerably complicates the task of any future US administration wishing to normalize relations with Cuba. The economic consequences for the island are potentially severe, prolonging the damaging effects of the embargo that has weighed on the Cuban economy for decades.
Companies and individuals subject to U.S. jurisdiction will need to keep a close eye on developments concerning the sanctions regime against Cuba.