New Executive Order Declares National Emergency and Authorizes Tariffs on Goods from Countries Supplying Oil to Cuba

On January 29, 2026, the White House issued a new Executive Order, “Addressing Threats to the United States by the Government of Cuba” (the “Executive Order”), declaring a national emergency with respect to Cuba and establishing a framework for the imposition of tariffs on imports into the United States of goods from any country that supplies oil to the island, directly or indirectly. The Executive Order—which tracks in key respects the White House’s novel approach on Venezuela under Executive Order 14245, “Imposing Tariffs on Countries Importing Venezuelan Oil”—represents a significant escalation of US policy toward Cuba, and is designed to maximize pressure on the increasingly isolated Cuban regime by forcing US trading partners (such as Mexico) to choose between continuing to supply energy to Cuba or facing higher costs to access the US market.

The Executive Order comes at a critical moment for Cuba, which, according to reports, is experiencing its worst economic crisis in the 67-year history of its communist revolution. Following recent US actions in Venezuela, Cuba has already lost access to Venezuelan oil—its largest supplier for the better part of two decades—and the new order appears aimed at pressuring remaining suppliers, particularly Mexico, to cease their shipments. The White House also issued an accompanying Fact Sheet detailing the policy objectives of this executive action (the “Fact Sheet”).

Key Provisions of the Executive Order

National Emergency Declaration and Policy Rationale: Invoking the International Emergency Economic Powers Act and the National Emergencies Act, the Executive Order declares 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. The White House’s rationale for the national emergency declaration includes the Cuban government’s support or alignment of hostile state and non-state actors, the hosting of foreign military and intelligence capabilities for adversaries of the United States, human rights violations, and the spread of communist ideas, policies and practices in the Western Hemisphere. According to the Fact Sheet, the Executive Order is intended to confront the Cuban regime and counter its malign influence.

Tariff Authorization Framework: To address this declared threat, effective January 30, 2026, the Executive Order establishes a new tariff regime that allows imposition of ad valorem duties on goods imported into the United States from countries that sell or otherwise provide crude oil and petroleum products (collectively, “oil”) to Cuba, directly or through intermediaries or third countries. The Executive Order employs the term “additional” to refer to the ad valorem duties imposed under the order. Although not expressly stated, this suggests that the duties would be supplemental to duties on imports imposed under other authorities.

Implementation Process: The Executive Order sets forth the following implementation process:

1. Determination of Oil Providers by Secretary of Commerce: The Secretary of Commerce, in consultation with the Secretary of State and other senior officials, as appropriate, is directed to determine whether a foreign country directly or indirectly sells or provides oil to Cuba.
2. Tariff Recommendation by Secretary of State in Consultation with Other Departments and Agencies: Following an affirmative finding that a foreign country is an oil provider to Cuba, the Secretary of State, in consultation with the Secretaries of the Treasury, Commerce, and Homeland Security and the US Trade Representative, is to determine whether and to what extent an additional ad valorem rate of duty should be imposed on goods from that country.
3. Presidential Approval: Upon making a determination that imposition of additional ad valorem duties on goods from a Cuba oil supplier country is appropriate, the Secretaries of State and Commerce must convey their recommendations to the President, who will make a final determination on the imposition of the duties and its scope, including the relevant duty rate.
4. Presidential Modification Authority: The President may modify the Executive Order in light of retaliation by affected countries or meaningful changes in circumstances, including the taking of significant steps by Cuba or other countries affected by the order to address the national emergency declared in the order.

Both Commerce and the State Department are authorized to issue rules, regulations and guidance to implement this regime and are tasked with ongoing monitoring and reporting to the President. The Secretary of State is also required, in consultation with other specified cabinet members, to recommend additional actions if necessary to the extent that the Executive Order is not effective. Given the January 30, 2026 effective date, the interagency implementation process should begin immediately, though the Executive Order is likely intended to have an immediate deterrent effect.

Practical Considerations for Companies

Trade and Tariff Exposure: Companies that import goods from countries that supply or may supply oil to Cuba, such as Mexico, should assess potential tariff exposure. Similarly, companies from Mexico and other countries that supply oil to Cuba should assess how the potential imposition of additional ad valorem duties could impact their business. While the Executive Order does not immediately impose tariffs, it establishes a framework for their imposition following administrative determinations, and the effective date of January 30, 2026 suggests that oil shipments are now actively being monitored. Companies should monitor the Federal Register and agency guidance for determinations of countries classified under the new tariff regime.

Oil and Energy Sector: Companies involved in the sale, trading, transportation, storage, or delivery of crude oil or petroleum products to or through the Caribbean region should enhance their due diligence on counterparties, shipping routes and ultimate destinations. The Executive Order’s broad definition of “indirect” supply—which includes sales through intermediaries or third countries—means that companies without a direct Cuban nexus could potentially be implicated if their products ultimately reach the island.

Mexico-Specific Considerations: Given Mexico’s status as a major US trading partner and its recent oil shipments to Cuba, companies with significant Mexican import exposure should monitor developments closely. The upcoming 2026 review of the United States-Mexico-Canada Agreement (USMCA) may provide additional pressure points, with some members of Congress already calling for the Trump Administration to demand that Mexico “end its oil shipments to the regime in Havana” as part of trade negotiations.

Conclusion

The Executive Order represents a significant escalation in the Trump Administration’s Cuba policy, deploying tariff authority to pressure the regime toward collapse or negotiation. The Order’s broad discretionary language, as well as the White House’s stated policy goals with respect to Cuba, may result in shifting regulatory contours as the circumstances evolve. Companies with any exposure to imports or exports from potential oil-supplying countries or to Cuban-related trade and business should monitor developments closely and assess compliance obligations.

Mayer Brown is closely monitoring developments and will continue to publish Legal Updates on significant changes with respect to Cuba. Please contact any of the authors or your usual Mayer Brown contact for further guidance.