The Trump administration's new sanctions on Cuba achieved significant business withdrawals this week, as Meliá, Iberostar, and Blue Diamond exited their Cuban hotel operations to comply with regulations targeting the military conglomerate GAESA. A bank processing Visa and Mastercard transactions also pulled out, leaving foreign businesses until Friday to exit ventures tied to the Cuban military.

GAESA controls approximately half of Cuba's economy, operating retail businesses, tourism, and other sectors. Companies remaining in Cuba face frozen assets, visa restrictions, and potential sanctions. The Cuban government condemned the moves as part of Trump's "strategy to strangle the Cuban people," while the State Department defended them as preventing military profiteering from international investment.

The tourism sector has largely collapsed after the Trump administration blocked fuel deliveries in January, limiting jet fuel and forcing airlines to cancel service. The World Food Program suspended plans to purchase nearly 3,000 tons of food for Cuba, unable to find shipping solutions or process payments through traditional channels.

These secondary sanctions represent a major escalation beyond previous trade restrictions, achieving economic pressure without military intervention. The exodus of international businesses will worsen Cuba's humanitarian crisis, with millions already facing power outages and food shortages.