What we know about Trump lifting US sanctions on Syria

The US Treasury announced on Friday an immediate easing of a broad range of sanctions on Syria.

The decision comes in the wake of the December 2024 ousting of Syrian dictator Bashar al-Assad and the installation of a transitional government led by Ahmed al-Sharaa - a figure who until recently appeared on US terror watchlists due to his past association with al-Qaeda.

Sharaa met with US President Donald Trump during a high-profile summit in Saudi Arabia earlier this month, an encounter that many observers saw as a pivotal moment in reshaping US posture on Syria.

On 23 May, the US Department of the Treasury issued General License 25, authorising transactions with the new Syrian government, the Syrian Central Bank, and a number of state-owned entities.

Simultaneously, Secretary of State Marco Rubio announced a 180-day waiver of  the Caesar Syria Civilian Protection Act, clearing the way for new investments and humanitarian projects across critical infrastructure sectors such as water, electricity, and sanitation.

Suspending the Caesar Act

Passed in 2019, the Caesar Act was named after a Syrian military defector who smuggled thousands of photos documenting mass killing, torture and abuse in Assad’s prisons. The law was designed to punish individuals and entities who provided material support to the Assad regime and deter foreign investment in any post-war reconstruction that might strengthen his grip on power.

It became a cornerstone of US efforts to economically isolate Damascus and restrict international actors from re-engaging with Syrian state institutions.

The 180-day waiver announced by Rubio is not a repeal of the Caesar Act but a temporary suspension of its enforcement. It allows foreign governments and businesses to participate in reconstruction efforts and invest in Syria without risking US penalties.

Rubio described the decision as "a first step," adding that the administration expects "swift actions from the Syrian government to ensure stability and prevent a return to conflict". He also warned that without support, Syria could be "weeks away from collapse and a full-scale civil war of epic proportions".

Who is no longer sanctioned?

The general license includes 28 Syrian individuals and entities now removed from sanctions lists. These include major state institutions such as the Central Bank of Syria, Syrian Arab Airlines, Cham Wings Airlines, the General Petroleum Corporation, and the Syrian Radio and Television Commission. Many of these bodies had long been cut off from the international financial system. Their removal from US blacklists is seen by the Treasury as essential for enabling financial transactions, reactivating banking services, and jumpstarting economic recovery.

This also opens the door for US financial institutions to engage with Syrian counterparts. The Financial Crimes Enforcement Network (FinCEN), an arm of the Treasury Department, issued a special exemption allowing American banks to maintain correspondent accounts for the Syrian Central Bank—an unprecedented step since the beginning of the Syrian conflict.

Economic implications

Years of conflict, international sanctions, and economic collapse have left Syria's economy in ruins. Hyperinflation, mass unemployment, and the collapse of the Syrian pound have rendered even basic services unreliable.

In response to the new US policy, the International Monetary Fund (IMF) announced its readiness to provide technical assistance. IMF Communications Director Julie Kozack stated, “Our staff are preparing to support the international community’s efforts to assist Syria in rehabilitating its economy, as soon as conditions allow.” The IMF has not conducted a formal review of Syria’s economy since 2009.

Domestically, the new transitional government led by Sharaa has promised an inclusive approach to governance, appointing ministers from various ethnic and religious communities. Officials have also pledged reforms to stabilize currency, restore public utilities, and reopen trade routes. The prospect of resumed banking operations and access to international credit has already led to cautious optimism among business leaders in Damascus and Aleppo.

US conditions, regional dynamics

The lifting of sanctions comes with clear strings attached. The Trump administration has stated that continued relief is conditional on Syria excluding foreign militants from governance and cooperating with international counterterrorism initiatives.

According to the Treasury, the sanctions relief will not apply to individuals or networks affiliated with the Assad regime, terrorist organisations, or those linked to ongoing human rights violations.

Rubio emphasized this point, stating that "we are not giving Syria a blank check", and that any backsliding on commitments to reform or security cooperation would lead to renewed sanctions. Observers note that Sharaa’s past, including accusations of involvement with extremist financing, may complicate efforts to fully normalise Syria’s standing.

Syrian government and global Reactions

The Syrian Foreign Ministry welcomed the US decision, describing it as "a positive step toward alleviating humanitarian and economic suffering". It emphasised Damascus’s readiness to "strengthen ties with international partners and foster an environment conducive to economic recovery and sustainable development".

International reaction has been cautiously supportive. The European Union and the United Kingdom announced partial lifting of their own sanctions to align with Washington’s move. EU foreign affairs chief Kaja Kallas stated that the bloc wants to "help the Syrian people rebuild a new, inclusive, and peaceful Syria," but also warned that "continued instability or repression will not be tolerated".