The United States took a historic step on Wednesday, formally launching the process to strip Syria of its State Sponsor of Terrorism designation after President Donald Trump notified Congress of his intent to revoke the label — one that has been attached to Syria since December 29, 1979. The move could represent the most significant change in US-Syrian relations in nearly half a century.
Under American law, Congress has a 45-day window to review the decision before it becomes official. In a formal letter directed to Syrian President Ahmed al-Sharaa, President Trump stated that Washington plans to clear away the “obstacles” standing in the way of Syria’s reconstruction and that American businesses are now “ready to invest” in the country.
Syrian political analyst Abdul Karim told The Media Line that the congressional notification carries far more weight than a routine legal step. “The notification reflects profound political and economic implications that signal a shift in Washington’s approach toward Damascus,” he said.
Karim noted that Trump’s letter to al-Sharaa went beyond simply announcing the start of a legal procedure. “It included a commitment to remove the obstacles preventing Syria’s reconstruction, while also confirming that American companies are prepared to invest in the country. This is the first official indication at this level linking a change in US policy toward Damascus with direct economic engagement,” he told The Media Line.
He also pointed out that the decision follows several months of incremental American moves, including loosening certain restrictions and establishing communication channels with Syria’s new government as part of a broader policy departure from decades of near-total isolation.
From a legal perspective, Syrian legal expert Ibrahim Hussein cautioned that the process is not yet complete. “The removal of the designation does not automatically lift the other US sanctions imposed on Syria, many of which are based on separate laws and executive orders,” Hussein told The Media Line. “However, it removes one of the most politically significant classifications affecting how international financial institutions and companies engage with Damascus.”
Syria was first added to the terrorism list on December 29, 1979, making it one of the earliest nations placed on the roster after it was established under the US Export Administration Act. Washington’s justification at the time centered on Syria’s alleged support for groups classified as terrorist organizations, as well as its harboring of leaders from Palestinian and Lebanese factions on US terrorism lists.
For more than four decades — through multiple US administrations — Syria remained on the list, making it one of the longest-standing entries. During that stretch, Washington imposed sweeping restrictions including arms export bans, limits on US economic aid, tighter controls on dual-use goods, and additional financial and banking penalties.
Syrian economist Osama Qadi said that completing the removal would give international financial institutions and foreign companies greater confidence to explore opportunities in Syria, even with other sanctions still in place. “The State Sponsor of Terrorism designation carried legal and psychological consequences that extended far beyond the direct sanctions themselves,” Qadi told The Media Line.
He added that Trump’s explicit mention of American companies being ready to invest marks a notable change in tone from Washington. “For years, official US statements focused primarily on sanctions, counterterrorism, and humanitarian assistance,” he said. “The current message is the first to present a vision in which the American private sector could participate in rebuilding Syria’s economy, provided the necessary legal and political procedures are completed.”
Qadi argued the messaging is aimed not just at Damascus but also at international banks and American and European businesses. “They are intended to demonstrate that US policy toward Syria has entered a new phase based on gradual engagement rather than comprehensive isolation,” he told The Media Line.
Syrian political analyst Abdullah al-Abdoun said Damascus views the decision as one of its biggest diplomatic wins since its new government came to power. “The decision provides Syria with an important opportunity to advance its efforts to reintegrate into the global economy, attract foreign investment, and convince Western governments that the country’s political landscape has fundamentally changed,” al-Abdoun told The Media Line.
However, he warned that Syria’s full reentry into the global financial system will take time. “The success of this step will ultimately depend on the future of the remaining sanctions, as well as Syria’s ability to implement economic and institutional reforms and provide the legal and security environment necessary to attract investors,” he said.
If Congress completes its review without blocking the move, Syria would become the first nation removed from the US State Sponsors of Terrorism list since Sudan in 2020. Iran, North Korea, and Cuba would remain on the list, underscoring just how significant Washington’s changing stance toward Syria is.
The decision does not, however, bring the broader US sanctions regime against Syria to an end. Much of that framework is rooted in separate legislation and executive orders — most notably the Caesar Syria Civilian Protection Act, which Congress passed in 2019 and which took effect in June 2020. That law dramatically expanded the reach of US sanctions by targeting anyone — including foreign governments and companies — that provides financial, technical, or engineering support to the Syrian government or takes part in reconstruction projects without US approval.
Following Syria’s 2011 uprising and the civil war that followed, then-President Barack Obama signed a series of executive orders targeting former President Bashar Assad, senior officials, and key state institutions, including asset freezes, investment bans, and sanctions on Syria’s oil, energy, and banking sectors.
Many analysts view the Trump administration’s latest move as the beginning of dismantling Washington’s oldest pressure tool against Syria, rather than the end of the broader sanctions structure that has grown over several decades. The real question going forward is whether the US will follow this step with additional legal and economic actions capable of fully reopening Syria to international finance and investment — or whether it will remain a major political gesture without deeper policy changes that fundamentally reshape the relationship between Washington and Damascus.
