Despite US President Donald Trump’s pledge to lift all sanctions on Syria, its continued designation as a State Sponsor of Terrorism is still weighing on investment prospects, even as Washington rolls back other restrictions, according to Al-Monitor.
A year after Trump said he would remove sanctions to support Syria’s economic recovery, the country remains on the State Department’s terrorism list alongside Cuba, Iran and North Korea.
The label, imposed in 1979, restricts US foreign assistance, defence sales and exports of certain dual-use goods.
Much of Washington’s sanctions architecture on Syria has already been dismantled. Since Trump’s meeting with Syrian President Ahmed al-Sharaa in Riyadh in May 2025, the administration has rescinded multiple sanctions layers, eased export controls, revoked terrorism designations linked to Sharaa’s former group and worked with Congress to repeal the Caesar Act.
The final step — removing Syria from the State Sponsor of Terrorism (SST) list — is now pending approval from US Secretary of State Marco Rubio.
“There's no other obstacle. He’s the last signature,” one administration official said.
A State Department spokesperson said the department is “reviewing Syria's SST designation” and “any action related to Syria’s status on the SST list would be based on the law and the criteria established by Congress.”
By Aghakazim Guliyev