This Day in History: 7 February 2020
7 February 1962
58 years ago, today, President John F. Kennedy issued an order that would restrict all of the US' trade with Cuba, having negative effects on Cuba's economy. This embargo was a result of the rapid decline in relations of the US and Cuba, after Fidel Castro began a revolution and new government backed by the US, causing the two to have an initially friendly relationship. However, the Americans remained skeptical, fearing he was a communist. As a result, President Dwight D. Eisenhower banned American companies from selling oil to Cuba, so Castro nationalised all three American oil refineries on their island. All hope of positive relations was abolished after the Bay of Pigs Invasion, a counter-revolution, staged by the CIA. Cuba was then declared as Marxist.
Today, the embargo has halted many times, and as a result, Americans are able to enter Cuba easily, although travel is still restricted. The embargo has seen to cause the US economy a loss of $5 billion per year, but the smaller economy of Cuba loses roughly $685 million per year, possibly mainly due to the loss of potential American tourists. The trade restrictions also forced Cuba to become highly dependent on the Soviet Union, but when they dissolved in 1991, the Cuban economy was devasted, even though they continued trade with the rest of the world. America had dealt Cuba's economy a blow that hindered its development for almost all its history as an independent nation.
Want to find out more about the US-Cuba embargo that had a horrible effect on Cuba for many years to come? Click here to view a timeline on the events.
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