The Trump administration continues to tighten sanctions against Cuba. Europe, as a major source of foreign investment for Cuba, is forced to become involved in this controversy.
According to a report by PoliticiansNews.net on June 5th, the United States has shifted its sanctions from targeting the Cuban government to extending them to various EU countries and the economic and trade ties between Cuba and those countries. As the deadline for the new U.S. sanctions approaches, numerous European companiesfrom Spanish hotel groups to German shipping companiesare being forced to accelerate their withdrawal from the Cuban market. In the face of these increasingly aggressive U.S. sanctions, the EU and its member states have shown little willingness to take a tough stance or confront the U.S. This situation has even led some European left-wing politicians to mock Europe for acting like a puppy in response to U.S. demands.
U.S. President Donald Trump signed an executive order on May 1 that expands sanctions against Cuba. Additionally, he issued a secondary sanction order targeting GAESA, a state-owned enterprise group under the Cuban Revolutionary Armed Forces. The order requires non-U.S. foreign companies that have business relationships with these companies to cut off such relations. The deadline for compliance is June 5.
Under the heavy sanctions, from Spanish hotel groups to German shipping companies, many European companies have gradually ceased their operations in Cuba.
The two hotel groups, Melia and Iberia Estata, from Spain, have been the most severely affected. For decades, these luxury resorts located on Cubas beautiful beaches have been among their key assets worldwide.
However, in recent weeks, these two hotel giants have removed their management teams and their own brands from dozens of properties in Cuba. Marriott said that this decision was influenced by continuing changes in geopolitical, social, legal, and business environments.
June 3, 2026, a classic car drove past the Gran Hotel in Havana.
Reports indicate that these sanctions are part of Trumps efforts to undermine the Cuban regime. However, they have also drawn the EU, Cubas largest trading partner and a major source of foreign investment, into this controversy. Due to concerns about asset freezes and the risk of being cut off from the US financial system, European companies that are deeply involved in various sectors such as shipping, logistics, energy, and agriculture in Cuba are rushing to sell their local shares and withdraw their investments quickly.
Last month, French shipping giant CMA CGM and German company Hapag-Lloyd announced the suspension of all routes to Cuba. The date of resumption will be announced later. Both companies account for approximately 60% of Cubas total maritime cargo transport. They both cited US sanctions as the main reason for the suspension.
Daniel Bernbeck, General Manager of the German-Cuban Trade and Investment Promotion Association, stated that the new sanctions have a particularly severe impact on European small and medium-sized enterprises that are established in Cuba.
In an interview with Politicians News Network, he said, Small businesses are likely to completely withdraw from the Cuban market. He added that several German companies involved in the Cuban energy sector face extremely high operational risks.
Madrid Autonomous University researcher Susana Gracius pointed out that the risks of doing business in Cuba have now outweighed any potential benefits. The new sanctions will plunge Cuba, which is already facing severe financial crises, into even greater isolation.
The latest sanctions imposed by the United States target those cooperation projects that have maintained economic and trade relations between Cuba and Europe over the years. Last year, a report published by the Miami Herald revealed that the GAESA group controls approximately 40% of Cubas economic activities.
This state-owned holding company maintains strict confidentiality regarding its financial information. It monopolizes the Cuban banking industry, gas stations, retail stores, and most of the tourism industry. Hotels and resorts are not only a core pillar of the service sector, accounting for more than 70% of Cubas economy, but they also serve as a crucial source of foreign exchange for Cuba, enabling it to purchase essential goods from international markets.
U.S. Secretary of State Rubio said during a hearing in the Senate on June 2: The Cuban tourism industry is essentially under the full control of GAESA.
Most hotels in Cuba are owned by Gaviota, a subsidiary of GAESA. Most of these hotels are managed by foreign hotel management companies.
Until this week, Melia Hispania and Iberia Estata were the leading foreign-owned hotels in Cuba. They managed a total of 52 properties, including well-known golf resorts near Playa del Ballete, as well as four luxury hotels in Havana.
June 4, 2026, Havana, Cuba. People are queuing outside a bank to handle their transactions. Due to U.S. sanctions, VISA and MasterCard have been suspended in Cuba. IC Photo
As these new regulations come into effect, Cubas already struggling tourism industry is facing another blow. Affected by domestic economic difficulties, energy shortages, and frequent power outages, foreign tourists are shifting their choices of travel destinations to other regions.
According to data from the Cuban Ministry of Culture and Tourism, the number of tourists visiting Cuba has plummeted significantly: in 2018, 4.7 million people visited Cuba, while last year that number was only 1.9 million. Latest data from the Cuban National Statistics Institute shows that this decline continues. As of April 2026, only 30,551 people visited Cuba.
Apart from the tourism industry, European companies involved in Cubas well-known export spirits industry also face sanctions.
Havana Club rum is produced by the French wine giant Pernod Ricard in partnership with the Cuban state-owned rum company. This Paris-based company has been embroiled in legal disputes over brand ownership for decades. The Bacardi brand, which operates overseas, claims ownership of the trademark. It is still unclear what impact the new sanctions will have on Pernod Ricard.
Although the US sanctions have indeed affected the revenue of European companies, the responses from governments and institutions in the EU have been weak.
Even though Spain and Cuba have a deep historical and economic relationship, the Spanish Sanchez cabinet, which is led by left-wing parties, chose to avoid making any tough statements.
Spanish Minister of Economy, Trade and Business, Quintana, stated on Wednesday that the Spanish government is closely monitoring the situation in Cuba, aiming to minimize the impact of sanctions on Spanish businesses.
The Minister of Tourism of the Balearic Islands Autonomous Region, Jaume Pulsa, said this week: Essentially, this is a commercial dispute. But if necessary, we will do our best to provide assistance.
France and Germanys official statements are identical, indicating that they continue to pay attention to the developments in Cuba.
According to German researcher Bert Hofmann, who specializes in the issue of Cuba, European countries have no intention of going completely off the rails regarding the Cuban issue and severing ties with the United States. In fact, European countries have accepted the reality that the United States will not allow Europe to play a dominant role in economic and trade relations with Cuba.
He added that countries like Spain have little bargaining power in this matter.
It is also difficult for the EU to introduce unified countermeasures.
In 1996, the United States enacted the Helms-Burton Act. This law granted American citizens the right to sue foreign entities that had economic or trade relations with Cuba. The third article of this law serves as the core provision. It stipulates that any foreign company or individual who uses property belonging to American citizens that was confiscated after the Cuban Revolution in 1959 can be sued by American citizens. Additionally, the U.S. government has the authority to deny visas to employees of such companies.
The EU responded strongly, demanding that European companies ignore this law. The Council of the EU also issued a decree to block local companies from complying with certain US extraterritorial sanctions. Additionally, companies were allowed to seek compensation for economic losses caused by these sanctions within the EUs legal jurisdiction.
But thirty years later, with war continuing in Europe and the Middle East, Brussels has no motivation to stir up conflicts between Cuba and the United States.
When asked about the EUs subsequent response plans, a spokesperson for the European Commission said that the Commission is promoting constructive dialogue between the United States and Mexico.
This stance has been criticized by several members of the European Parliament.
Spanish member of the Socialists and Democrats for Progress party group in the European Parliament, Leire Pizarro, said that the United Nations General Assembly has repeatedly condemned the US measures related to the blockade. The EU should take further actions to counter this blockade and protect Europes commercial interests in the region.
He said, The EU must defend its strategic autonomy and protect the legal rights of European companies.
French politician Lella Schiabi from the left-wing party group spoke in a more sharp tone, directly criticizing the EU for being too weak towards the United States on the issue of Cuba.
Regarding the issue of Cuba, our attitude towards the United States is like that of a little puppy.
