Trump Signs Executive Order Expanding Cuba Sanctions, Threatening Foreign Banks With U.S. Market Cutoff

President Donald Trump signed an executive order Friday significantly expanding U.S. sanctions on Cuba, introducing for the first time secondary sanctions that threaten to cut foreign banks and companies off from the U.S. financial system if they conduct business with the Cuban government or sanctioned individuals.

The Details

The May 1 executive order invokes the International Emergency Economic Powers Act to block U.S. assets of any foreign person operating in key Cuban economic sectors, including energy, defense, mining, and financial services. The order targets agents, officials, and material supporters of the Cuban government, those who support Cuba's security apparatus, and those complicit in government corruption or serious human rights violations.

The secondary sanctions provision marks a significant departure from prior Cuba policy. Foreign banks and companies worldwide now risk losing access to the U.S. financial system if they conduct or facilitate transactions for the Cuban government or designated individuals. Brian Fonseca, Vice Provost for Defense and National Security Research at Florida International University, described the shift in stark terms.

"Washington is doubling down on economic pressure by raising legal and financial risk for anyone helping sustain the Cuban regime's economy. Secondary sanctions are the centerpiece here," Fonseca told the Miami Herald.

The order also includes a clause authorizing sanctions on the adult relatives of designated individuals, with no prior notice required.

The White House accused Cuba of aligning with hostile countries, hosting foreign adversary facilities targeting U.S. national security, maintaining close ties with Iran, and providing safe haven for groups such as Hezbollah.

Cuban President Miguel Diaz-Canel condemned the measures in a post on X, calling them coercive measures designed to intimidate Cuba.

Rep. Carlos Gimenez (R-FL) praised the order. "The newly implemented sanctions against the Cuban regime are necessary to target its security apparatus — the machine that jails political prisoners and oppresses its people," Gimenez said.

Context

Cuba has been under a comprehensive U.S. trade and financial embargo for decades, but the new executive order introduces secondary sanctions targeting foreign companies and banks for the first time. The Trump administration previously used the threat of hefty tariffs to largely block foreign countries from shipping oil to Cuba, causing severe energy shortages on the island.

Friday's order follows a series of escalating pressure measures. In June 2025, Trump issued a National Security Presidential Memorandum strengthening U.S. policy pressure on Cuba. In January 2026, he signed an executive order declaring a national emergency and threatening tariffs on countries selling or providing oil to Cuba. In late March 2026, Trump said Cuba is next after the Venezuela operation — a reference to the U.S. capture of Venezuelan President Nicolas Maduro in January 2026 on narco-terrorism charges. On April 13, Trump said the United States might stop by Cuba after the Iran conflict is finished.

In early April 2026, senior State Department officials traveled to Havana and warned Cuban counterparts of a small window to meet U.S. demands. Talks have since stalled after Havana rebuffed key U.S. demands while announcing some economic measures that fall short of Washington's expectations. The Pentagon has drawn up contingency plans related to potential military action in Cuba, according to USA Today.

Secretary of State Marco Rubio has said Cuba needs significant economic and political reforms.

Andy Gomez, a professor of Cuban Studies at the University of Miami, said the sanctions carry a message beyond Havana. "This is the hidden message behind what has been written, and that's how I read it," Gomez said, interpreting the order as a warning to Russia and China to keep their distance from Cuba. He added that the move signals the issue remains a White House priority. "This move shows Cuba it hasn't been forgotten. Even with other international priorities, the issue of Cuba is still on the table."

What's Next

The Treasury Department and State Department are expected to identify and designate specific foreign individuals, banks, and companies subject to the new secondary sanctions provisions, though an exact implementation timeline was not specified at the time of signing. Talks between Washington and Havana have stalled after Cuba rebuffed key U.S. demands.