Tariffs on Countries That Facilitate the Sale of Oil to Cuba: Executive Order  

"Addressing the Threats to the United States Posed by the Government of Cuba"
 

On January 29, 2026, President Donald J. Trump signed a new Executive Order entitled "Addressing the Threats to the United States Posed by the Government of Cuba", declaring a national emergency with respect to Cuba (the "E.O."). The E.O., which became effective at 12:01 a.m. EST on January 30, 2026, authorizes the United States government to impose ad valorem tariffs on imports originating from foreign countries that, directly or indirectly, sell, transfer, or otherwise provide oil to Cuba.

President Trump determined that the policies, practices, and actions of the Government of Cuba constitute an unusual and extraordinary threat to the national security and foreign policy of the United States. Accordingly, the E.O. adopts an economic response aimed at deterring conduct that supports or benefits the Cuban regime and at reinforcing the national security and foreign policy objectives of the United States.
The E.O. establishes a tariff framework pursuant to which goods imported into the United States that are products of any country that directly or indirectly sells or otherwise provides oil to Cuba may be subject to an additional ad valorem tariff. The Department of Commerce, in consultation with the Department of State, will be responsible for determining whether a foreign country has engaged in such conduct. Upon an affirmative determination, the Department of State, in coordination with the Department of the Treasury, the Department of Commerce, the Department of Homeland Security, and the Office of the United States Trade Representative, will determine whether additional tariffs should be imposed and at what level, subject to the President’s final consideration and approval.

The Departments of State and Commerce are further authorized to take all necessary actions, including issuing rules, implementing regulations and guidance, and making any determinations required to implement the tariff regime and related measures.

DRT Commentary

The E.O. has significant implications for companies operating in the energy and international trade sectors, as the definition of "indirectly" selling or providing oil to Cuba is extremely broad. The term "indirectly" includes sales or transfers conducted through intermediaries or third countries, with knowledge that the oil could ultimately be supplied to Cuba. This expansive definition increases legal exposure for companies involved in the global energy trade, as well as in transportation and logistics. Even entities with no direct commercial relationship with Cuba may face heightened risk if their activities involve counterparties, intermediaries, or supply chains connected to Cuba-related oil transactions.
Accordingly, entities engaged in global energy and trade activities should carefully review their transactions, counterparties, and supply chains to ensure compliance with the E.O.
DRT has extensive experience advising individuals and international organizations on sanctions and international trade compliance, including counseling clients on evolving regulatory requirements and compliance risks. This work includes, among other things, compliance assessments, the design and implementation of tailored Sanctions Compliance Programs, as well as ongoing compliance advice and risk mitigation strategies.

* By Michael Diaz, Jr., Javier Coronado Diaz, Isabela Hernández-Peredo Martínez.

** This bulletin is not intended to constitute legal advice. No legal opinion is expressed or should be inferred. You are encouraged to contact us to discuss legal solutions tailored to your needs and the specific circumstances of your situation.