Trump Announces End to Sanctions on Syria
On May 13, 2025, US President Donald Trump declared the end of long-standing American sanctions on Syria during a visit to Saudi Arabia. The decision marks a significant shift in US policy and a major diplomatic win for Syria’s new government, which came to power after the ousting of former president Bashar al-Assad in December 2024.
“There’s a new government that will hopefully succeed in stabilising the country and keeping peace,” Trump stated in Riyadh. He is expected to meet Syria’s new president, Ahmed al-Sharaa, signalling Washington’s readiness to reintegrate Damascus into the global fold.
Celebrations erupted in Damascus following the announcement, with Syrians expressing hope that lifting the sanctions will help rescue the nation’s war-torn economy.
Why the U.S. Sanctioned Syria
US sanctions against Syria began in 1979 when the country was labelled a “State Sponsor of Terrorism.” Over the decades, measures expanded to include financial restrictions, an arms embargo, and investment bans, particularly after the Syrian civil war broke out in 2011.
These sanctions targeted not only Syria’s government but also individuals and entities linked to the Assad regime. By freezing Syrian assets overseas, halting petroleum imports, and blocking American investments, the US effectively cut Syria off from the global economy.
What Has Changed?
The new Syrian leadership under Ahmed al-Sharaa has gradually gained global legitimacy. Al-Sharaa’s administration has distanced itself from former militant ties, promised greater inclusivity, and signalled willingness to engage in regional diplomacy—including indirect talks with Israel.
Regional powers including Saudi Arabia, Qatar, and Turkey heavily lobbied Trump before he made his decision.
“This wasn’t difficult for Trump to do,” noted Omar Rahman of the Middle East Council on Global Affairs. “He didn’t need permission from Congress.”
Trump hinted at broader cooperation, even joking about potential US business ventures in Syria. “Oh, what I do for the crown prince!” he joked, pointing to Saudi Crown Prince Mohammed bin Salman.
Central Bank Welcomes Sanctions Relief, But Cautions Reforms Needed
The Central Bank of Syria welcomed Trump’s decision as a pivotal moment, while emphasising that substantial financial reforms must follow. Governor Abdulkader Husrieh outlined a three-pronged strategy: modernising monetary policy, rebuilding the banking sector, and reconnecting Syria to international capital markets.
Prolonged sanctions slashed Syria’s economic output by more than 60%, drove 80% of its people into poverty, and left over half facing food shortages. Rebuilding trust, both domestically and internationally, is now critical.
“We must move from ad hoc monetary interventions to a transparent, rules-based system,” Husrieh said. Plans are underway to unify exchange rates, adopt inflation-targeting, and reform regulatory standards in line with global norms.
What’s Next for Syria’s Economy?
Removing the sanctions paves the way for new investments, especially from financial entities in Arab nations and Turkey. Although it remains uncertain whether the US itself will engage economically, the move removes a key barrier for other nations and private investors.
Syria is also working to attract diaspora investments through low-risk financial instruments.
The central bank is exploring infrastructure bonds and investment funds that would allow expatriate Syrians to contribute to national recovery.
Support from international organisations such as the World Bank and IMF will be essential—not just in funding but in rebuilding Syria’s institutional and policy frameworks. Regional partners have already begun clearing Syria’s arrears to multilateral lenders.
A Long Road Ahead
While lifting sanctions is a crucial step, Syria’s challenges remain vast. Infrastructure must be rebuilt, inflation tamed, and trust in financial systems restored. But for the first time in years, there is cautious optimism that Syria can move beyond war and isolation toward reconstruction and reintegration.
Husrieh stated that Syria’s progress depends as much on building robust institutions as it does on ending conflict, adding that the central bank would play a central role in the nation’s recovery.
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@thenationalnews Syrians took to the streets on Tuesday night following Donald Trump’s announcement that the US would remove sanctions on Syria at the behest of the Saudi Crown Prince Mohammed bin Salman. #Syria #sanctions #saudi #MBS #news
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