Trump lifts Syria sanctions in major policy shift, paving way for reconstruction
By isabelle // 2025-05-14
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  • President Trump announced the lifting of all U.S. sanctions on Syria to revive its economy and normalize relations after years of isolation, a move influenced by Saudi Arabia and Turkey.
  • Trump framed the decision as a chance for Syria to rebuild, calling it "their time to shine," while Syria’s interim government welcomed it as a "new beginning" for reconstruction.
  • The sanctions relief could unlock billions in aid and investment, but Syria’s economy remains devastated, with widespread poverty and reliance on illicit trade like the $5.6 billion captagon drug industry.
  • Critics warn that engaging with Syria’s leader, Ahmed al-Sharaa, a former militant with a terrorist past, risks empowering extremists and alienating allies like Israel.
  • The move is a high-stakes gamble: It may stabilize Syria and counter Iran, but it could also deepen regional instability if Sharaa’s government fails to deliver security.
In a dramatic shift in U.S. foreign policy, President Donald Trump announced Tuesday that he will lift all sanctions on Syria in a move aimed at jumpstarting the war-torn nation’s economy and normalizing relations after more than a decade of isolation. The decision, made during Trump’s first international tour of his second term, came at the urging of Saudi Arabia’s Crown Prince Mohammed bin Salman and Turkish President Recep Tayyip Erdogan. "I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness," Trump declared at the Saudi-U.S. Investment Forum in Riyadh. "It’s their time to shine. We’re taking them all off. Good luck, Syria — show us something very special." The announcement marks a turning point for Syria, which has been severed from the global financial system since 2011, when the U.S. and allies imposed crippling sanctions in response to Bashar al-Assad’s brutal crackdown on pro-democracy protests. The measures froze assets, restricted trade, and deterred foreign investment, exacerbating an economic collapse that saw Syria’s GDP shrink by more than half.

A new chapter for Syria

Syria’s interim government, led by President Ahmed al-Sharaa — a former al-Qaeda-linked militant who rebranded as a pragmatic leader—welcomed the decision. Foreign Minister Asaad al-Shibani called it a "new beginning on the path to reconstruction," crediting Saudi Arabia for facilitating the breakthrough. The sanctions relief could unlock billions in reconstruction aid and foreign investment, particularly from Gulf states eager to counter Iranian influence. However, skepticism remains. Syria’s economy is in ruins, with 90% of its population living in poverty and its infrastructure decimated by war. The country has relied heavily on illicit trade, including captagon drug production, which is now its most lucrative sector, valued at $5.6 billion annually.

Controversial diplomacy

Trump’s decision comes ahead of an expected meeting with Sharaa in Riyadh on Wednesday, an encounter that would have been unthinkable years ago. Sharaa, once a U.S.-designated terrorist with a $10 million bounty, spent five years in a U.S. prison in Iraq before leading the rebellion that toppled Assad in December 2024. His group, Hayat Tahrir al-Sham (HTS), remains on U.S. and UN terror lists, though it formally dissolved in January. Critics warn that legitimizing Sharaa’s government risks emboldening extremists. Israel, which has occupied parts of southern Syria since 2024, has repeatedly cautioned against engagement. "Al-Sharaa has a checkered past," said Rep. Marlin Stutzman (R-Ind.), who recently met the Syrian leader. "If we don't engage, I believe that we would definitely just be pushing him back into the arms of Russia and potentially even Iran."

Economic lifeline or geopolitical gamble?

The sanctions lift could accelerate Syria’s reintegration into the global economy, but challenges loom. Banks may remain wary due to lingering terror designations, and corruption is rampant. Meanwhile, Trump framed the move as part of a broader Middle East realignment, praising Saudi Arabia’s role in brokering the decision. "Oh, what I do for the crown prince," Trump quipped, drawing laughter from the audience. The UN welcomed the move, with spokesperson Stephane Dujarric saying, "It was important for us to see relief on sanctions on Syria to help the reconstruction of Syria, to help the Syrian people recover from more than a decade of conflict, a decade of under investment." But former U.S. officials caution that Syria’s recovery hinges on stability, which is something Sharaa’s fractured government has yet to achieve. Trump’s sanctions reversal is a bold bet that engagement, rather than isolation, can stabilize Syria and counter Iranian influence. Yet the risks are significant: rewarding a former jihadist leader, alienating allies like Israel, and potentially fueling further regional volatility. As Syrians celebrate in Damascus, time will tell if this gamble will bring peace — or deeper chaos. Sources for this article include: Reuters.com FoxNews.com CNBC.com CNN.com
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