Trump Lifts Tariffs on Countries Supplying Oil to Cuba
New executive order by Donald Trump removes oil tariff mechanism following court ruling, though national emergency against the island remains active.
In an unexpected policy shift, U.S. President Donald J. Trump signed a new executive order this February 24 eliminating the additional tariff mechanism against countries that sell or supply oil to Cuba. The move comes after a series of legal challenges and a recent Supreme Court ruling regarding the limits of executive power in trade matters.
A Setback Forced by the Judiciary
The Trump administration had utilized the International Emergency Economic Powers Act (IEEPA) to threaten tariffs of up to 15% on exports from nations like Mexico if they continued sending crude to the island. This “oil siege” has been the driving force behind the severe blackout crisis gripping Cuba this February.
However, the new technical order specifically dismantles the imposition of these trade levies. Experts suggest the White House preferred to withdraw the mechanism rather than face a definitive defeat in higher courts that could limit its ability to use tariffs on other geopolitical fronts.
The National Emergency Continues
Despite this relief on the tariff front, the White House was emphatic: the National Emergency regarding Cuba remains active. The financial blockade, the prohibition on using dollars, and restrictions on shipping companies that touch Cuban ports have not changed.
This decision comes at a time of extreme tension, with Cuban Prime Minister Manuel Marrero Cruz insisting on a “plan against plan” to manage the critical shortage that left a generation deficit of over 1600 MW this Monday.
Current Situation in Figures
- Energy Deficit: 1680 MW reported this week.
- Eliminated Tariff: Up to 15% punitive mechanism cancelled.
- Political Status: Cuba remains on the State Sponsors of Terrorism list.
Related Posts
- Uninterrupted Blackouts in Cuba: Energy Deficit Reaches 1680 MW
- US Already Shipping Fuel to Cuba: 10 Tankers Arrive via Private Route
- Dollar Hits 505 CUP: Cuba’s Central Bank Reacts Too Little, Too Late
- Cuba Sets Blackout Record: 64% of Country Without Power
- Russian Tanker Sea Horse Heads to Cuba, Testing Trump Oil Blockade
Frequently Asked Questions
- Why did Trump lift these specific tariffs on Cuba?
- The removal follows a Supreme Court ruling that questioned the legality of the mechanism based on the International Emergency Economic Powers Act (IEEPA).
- Does this mean sanctions against Cuba have ended?
- No. The order maintains the 'National Emergency' status, and other trade and financial sanctions remain fully in force.
- Which countries benefit from this measure?
- Primarily Mexico and potential suppliers that had halted shipments fearing the previously announced punitive tariffs of up to 15%.
- What is the impact on the island's energy crisis?
- While it reduces pressure on shippers, Cuba's lack of foreign currency and general financial siege remain the biggest obstacles to importing crude oil.
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