U.S. Creates Tariff Process for Countries Supplying Oil to Cuba

Trade Update • Jan. 30, 2026

Key Points

• Tariffs target imports from countries that directly or indirectly supply oil to Cuba.
• Secretary of Commerce identifies offending countries; Secretary of State recommends tariff levels.
• Federal agencies enforce tariffs and monitor compliance.
• Tariffs can be adjusted based on retaliation, cooperation, or changed circumstances.

Through a new executive order, the U.S. has established a new tariff system targeting imports from countries supplying oil to Cuba, effective at 12:01 a.m. EST on January 30, 2026. This follows a national emergency declaration citing threats to U.S. security, foreign policy, and regional stability. The Secretary of Commerce will identify countries providing oil, while the Secretary of State, in consultation with other senior officials, will recommend ad valorem tariff rates. Federal agencies will implement and monitor compliance.

How the Tariff Process Works

• Country Identification: The Secretary of Commerce, consulting the Secretary of State, determines which countries supply oil to Cuba, directly or indirectly.
• Tariff Recommendation: The Secretary of State, with consultation from Treasury, Commerce, Homeland Security, and U.S. Trade Representative, recommends ad valorem duty rates.
• Presidential Approval: The President reviews recommendations and establishes final tariff levels.
• Implementation: Federal agencies may issue rules, regulations, or guidance necessary to enforce tariffs.
• Modification: Tariffs may be adjusted if Cuba or affected countries take steps to address the national emergency or align with U.S. security and foreign policy objectives, or in response to retaliation.’

According to the EO:

“Sec. 2. Imposition of Tariffs. (a) Beginning on the effective date of this order, an additional ad valorem rate of duty may be imposed on goods imported into the United States that are products of any other country that directly or indirectly sells or otherwise provides any oil to Cuba, in accordance with subsections (b) and (c) of this section.”

Monitoring and Reporting

• Ongoing Oversight: Secretary of State monitors circumstances and informs the President if further action is needed.
  
• Commerce Monitoring: Secretary of Commerce tracks ongoing oil sales to Cuba, including indirect transfers via intermediaries or third countries.
  Congressional Reporting: Secretary of State submits recurring and final reports to Congress on the national emergency and related authorities exercised.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.