The United States has imposed a new wave of sanctions targeting foreign businesses operating in Cuba through entities linked to the Cuban government. By threatening to cut off access to the U.S. financial system, the U.S. has set a Friday deadline for these companies to withdraw or face significant consequences. This marks the first use of what experts call 'secondary sanctions' — penalizing non-U.S. companies for doing business with a sanctioned country. The move expands the reach of U.S. policy beyond its own borders, aiming to isolate the Cuban government economically.

Salvador Coppola, a Cuban-American who fled Cuba in the 1960s after his family’s assets were seized, supports the action as a way to pressure foreign investors. Michael Bustamante, Chair of Cuban Studies at the University of Miami, warns that while the sanctions may disrupt foreign investment, they could also deepen humanitarian hardship for ordinary Cubans. He notes that companies with ties to both the U.S. and Cuban markets likely cannot afford to lose access to American financial infrastructure.

Early signs of impact are already visible: Cuba’s Central Bank confirmed that a bank handling Visa and MasterCard transactions has exited, and video footage shows foreign hotels removing branding. Company executives risk losing U.S. travel visas and having personal assets frozen. However, it remains unclear how swiftly the U.S. will enforce penalties against non-compliant firms. The broader effectiveness and human cost of the policy remain open questions.