Trump lifts sanctions on Syria. But is there a catch?

U.S. President Donald Trump stunned both allies and his own administration Tuesday by announcing in Saudi Arabia that he would lift all U.S. sanctions on Syria — a country still reeling from 13 years of war.

Why it matters

The sweeping move could significantly reshape Syria's economic future and the region's geopolitics — but U.S. officials weren’t ready for it. Some at the State and Treasury Departments found out when the public did.

The big picture

Trump made the announcement without notifying key departments responsible for sanctions enforcement.

No internal directive was issued, leaving officials scrambling to determine which sanctions to unwind, how, and when.

Sanctions on Syria span decades, including the 1979 state sponsor of terror designation and the 2019 Caesar Act, complicating any rollback.

Behind the scenes

Senior State and Treasury officials had prepared memos months ago in case sanctions were lifted — but received no signal from the White House that action was imminent.

“Everyone is trying to figure out how to implement it,” one U.S. official told Reuters

Trump’s move came shortly before a meeting with interim Syrian President Ahmed al-Sharaa in Saudi Arabia.

Between the lines

Some White House aides and lawmakers had expressed concern over easing sanctions due to Sharaa’s past ties with al Qaeda — ties he publicly severed in 2016.

Flashback

The Caesar Act, renewed just last year, imposes severe penalties not only on the Syrian regime but also on third parties doing business with it.

Lifting it would require congressional approval — though Trump could sidestep with national security waivers or general licenses.suspending some or all of the sanctions.

What they're saying

“I'd be surprised if every single sanction goes,” said Edward Fishman, former State Department official and author of Chokepoints.
“Entities tied to terrorism or human rights violations will likely stay on the list.”

Business executives, Syria's Finance Minister Yisr Barnieh , and analysts told Reuters they anticipated an influx of capital into the bankrupt economy once sanctions are lifted.

Syria's pound has strengthened since Trump's announcement.

Currency traders said it was hovering between 9,000 and 9,500 to the dollar on Wednesday, compared to 12,600 earlier this week. Before the war in 2011, it traded at 47.

What’s next

The White House said Trump’s decision followed lobbying by Turkey and Saudi Arabia, a White House official told Reuters.

The president tied sanctions relief to conditions: expelling foreign terrorists, deporting Palestinian militants, and cooperating to prevent an ISIS resurgence, according to a White House readout of Trump's meeting with the Syrian leader.

But the actual unwinding could take months.

Removing sanctions is rarely straightforward, often requiring close coordination between multiple different agencies and Congress.

But it is particularly challenging in Syria's case, given the layers of measures cutting it off from the international banking system and barring many international imports.