Cuba, already in a critical situation, faces new challenges after US President Donald Trump signed an executive order allowing tariffs on goods from countries selling or providing oil to Cuba. The island currently needs about 110,000 barrels of oil per day, with over 40,000 extracted from its northern coast. The remainder is imported, making the economy vulnerable. Key suppliers include Venezuela, Russia, and Mexico. A halt in supplies from Mexico, the new main provider, could have catastrophic consequences: a 27% drop in GDP, a 60-75% increase in food and transportation prices, and a 30% decrease in household consumption. Following the arrest of Venezuelan President Nicolás Maduro, the already chronic power outages have intensified.
Trump's New Order to Impact Cuban Economy
Trump's executive order on tariffs for oil supplied to Cuba worsens the island's critical situation. Amid fuel shortages and power outages, the main supplier, Mexico, is under US pressure. Economists warn of a potential GDP collapse and hyperinflation.