Cuba sees mass exit of foreign hotels and firms as US sanctions tighten

President Donald Trump signed an executive order that tightens U.S. sanctions on Cuba’s military‑linked conglomerate Gaesa, setting a deadline for foreign companies to sever ties.

After the deadline, Spanish hotel groups Iberostar and Meliá, Canadian Blue Diamond, Asian Archipelago International, and several other firms announced they are ending or scaling back operations on the island, closing dozens of hotels and suspending container shipments. Spanish Economy Minister Carlos Cuerpo said Spain is in "direct contact" with affected companies to "minimise the impact".

Analysts describe the fallout as "devastating" for Cuba’s economy, warning that 2026 could become the worst year in seven decades. Canadian miner Sherritt also announced it would abandon its nickel‑cobalt operations in Cuba, adding to the broader economic shock.