U.S. moves to remove Syria’s terror designation

In a major shift in Washington’s decades-long policy toward Syria, United States (U.S.) President Donald Trump has initiated the process of removing Syria from the U.S. list of State Sponsors of Terrorism, marking one of the most significant diplomatic developments since the fall of the Assad regime on 8 December 2024.

During the NATO Summit in Ankara, Syrian President Ahmad al-Sharaa held a brief trilateral discussion with Trump and Ukrainian President Volodymyr Zelensky, highlighting Syria’s gradual return to international diplomacy after years of isolation. The meeting represented a symbolic moment for Damascus, as Syrian leadership had previously been largely excluded from major international forums due to the Assad government’s policies and the consequences of the civil war.

From here, the announcement reflects a broader U.S. strategy aimed at supporting Syria’s political transition, encouraging economic recovery, and integrating Damascus back into the international system.

Trump announces plan to remove Syria from terrorism list

President Trump informed Congress of his administration’s intention to rescind Syria’s designation as a State Sponsor of Terrorism, according to senior U.S. officials. The announcement came shortly after Trump confirmed that he was considering removing Syria from the list during his meeting with President Ahmad al-Sharaa in Türkiye on the sidelines of the NATO summit.

The decision follows a broader policy transformation initiated by Washington in recent months. Trump previously issued an executive order ending the majority of U.S. sanctions imposed on Syria, allowing the country to reconnect with international financial institutions and opening the door for foreign investment and reconstruction efforts.

Secretary of State Marco Rubio described the move as another “historic step” by the Trump administration, arguing that lifting restrictions would provide Syria with an opportunity to rebuild after years of conflict.

Lifting sanctions on Syria will unlock international trade and investment, give Syria a chance to rebuild, and open a new chapter for the Syrian people.

The Department of State stated that the decision was based on several factors, including changes in Syria’s political environment, counterterrorism actions taken by the new Syrian government, and assurances provided by President al-Sharaa that Syria would not support acts of international terrorism in the future.

What is the U.S. State Sponsors of Terrorism designation?

The U.S. State Sponsors of Terrorism (SST) designation is one of Washington’s most significant foreign policy tools for pressuring governments accused of supporting international terrorism. Managed by the U.S. Department of State, the list includes countries that Washington determines have repeatedly provided support for acts of international terrorism.

Countries placed on the list face a wide range of economic and diplomatic restrictions. These include limits on U.S. foreign assistance, a ban on defense exports and military sales, restrictions on certain exports of dual-use technologies, and additional financial controls. The designation also carries broader consequences, as international banks, companies, and investors often avoid transactions with listed countries due to legal risks and concerns about potential U.S. penalties.

Syria was first added to the list in 1979, making it one of the longest-standing countries under the designation. Over the years, additional sanctions were imposed on Damascus, particularly during the Syrian Civil War (2011-2024), including measures targeting government officials, businesses, and entities linked to the Assad regime.

However, remaining on the terrorism list created a major obstacle to Syria’s economic recovery. Even after other sanctions were eased, the designation continued to discourage foreign investment, complicate financial transactions, and limit the country’s ability to attract international assistance.

The removal process requires the U.S. president to formally notify Congress, after which lawmakers have 45 days to review the decision. Unless Congress rejects the move, the rescission will become effective, officially ending Syria’s nearly five-decade presence on the list.

A new phase in U.S.-Syria relations

The decision represents a dramatic shift in American policy toward Damascus. For decades, U.S.-Syria relations were defined by confrontation, sanctions, and diplomatic isolation, particularly under the leadership of Bashar al-Assad. However, following Assad’s removal from power, Washington has pursued a different approach, focusing on engagement with the new authorities.

Trump has repeatedly expressed support for Syria’s new leadership, praising al-Sharaa’s efforts to consolidate authority and restore stability after years of fragmentation. The U.S. president described his Syrian counterpart as a strong leader who had managed to bring different parts of the country together despite enormous challenges.

The Trump administration has also highlighted Syria’s cooperation against extremist organizations, particularly efforts aimed at preventing the resurgence of the Islamic State (IS or ISIS). Washington argues that supporting a stable Syrian government is essential for regional security and reducing the conditions that allow extremist groups to expand.

The improved relationship has also been influenced by Türkiye’s role. Trump credited Turkish President Recep Tayyip Erdoğan with helping establish closer ties between Washington and Damascus, describing the relationship between the three countries as part of a broader effort to stabilize Syria.

Economic recovery and reconstruction opportunities

The removal of Syria from the terrorism list is expected to significantly improve the country’s economic prospects after more than a decade of war. The Syrian conflict destroyed large parts of the country’s infrastructure, displaced millions of people, and severely damaged its economy.

By removing legal barriers associated with the SST designation, Washington hopes to encourage foreign companies and financial institutions to return to Syria. Gulf countries, such as Qatar and the Kingdom of Saudi Arabia (KSA) have already signaled interest in supporting reconstruction through major investments, with the latter announcing in July that it would invest $2.9bn in the country and pledging to cover Syria’s debt to the World Bank along with Doha, while other regional actors have expressed willingness to provide economic assistance.

The move also complements Washington’s decision to dismantle most sanctions programs targeting Syria and repeal the Caesar Act measures that imposed sweeping restrictions on individuals, companies, and institutions connected to the former Assad government.

Nevertheless, the U.S. has stressed that sanctions will continue against Assad, his close associates, individuals accused of serious human rights violations, and actors considered threats to regional stability. The administration has sought to separate support for Syria’s reconstruction from accountability for abuses committed during the previous era.