President Donald Trump's new Cuba policy may end up hurting the people he's trying to help.

In a Friday speech in Miami, the president said he's "canceling" Obama-era policies that have allowed the Castro regime to profit from tourism. Instead, the White House revealed on Friday that new regulations will be drafted that will seek to end the method that many Americans have used to access Cuba legally.

Tourism is technically banned by the U.S. embargo, but the Obama administration relaxed regulations, allowing Americans to visit Cuba under so-called people-to-people travel. Under Trump's policy, Americans pursuing this type of travel would have to go in approved groups.

While Trump wants to encourage business with the Cuban people, eliminating individual people-to-people travel undercuts that goal, Risa Grais-Targow, Latin America director at Eurasia Group, told CNBC on Friday.

"Those private entrepreneurs on the island have really benefited from increased U.S. travel, so cutting that back is going to hurt them as much as it hurts the government," she said.