Trump Says US May Remove Syria From Terrorism List. What Does It Mean For Damascus?
Trump Says US May Remove Syria From Terrorism List. What Does It Mean For Damascus? Published By, Last Updated: July 08, 2026, 20:38 IST For
Trump Says US May Remove Syria From Terrorism List. What Does It Mean For Damascus? Published By, Last Updated: July 08, 2026, 20:38 IST For Damascus, Trump's move could open the door to investment, reconstruction funding and greater diplomatic legitimacy. Rapid Read Syria has been designated a State Sponsor of Terrorism since 1979, making it the longest-serving country on the US list. US President Donald Trump met Syrian President Ahmed al-Sharaa on Wednesday and indicated that Washington could remove Damascus from its list of State Sponsors of Terrorism. Speaking on the sidelines of the NATO summit in Ankara, Trump praised al-Sharaa, saying the Syrian leader had done “a great job." BREAKING: Trump says he will remove Syria from the state sponsor of terrorism list pic.twitter.com/11Sv9RH3kd— Insider Paper (@TheInsiderPaper) July 8, 2026 Trump had earlier suggested that Syria, rather than Israel, should take the lead in addressing the threat posed by Lebanon’s Iran-backed Hezbollah. Why It Matters For Syria Syria has been designated a State Sponsor of Terrorism since 1979, making it the longest-serving country on the US list. Following the collapse of the Assad regime in December 2024 and the emergence of a new government under al-Sharaa, the Trump administration has reportedly been reviewing the designation.
Removal from the list would not only signal a diplomatic reset but also unlock a range of economic, financial and legal benefits for the war-ravaged country. Boost for Foreign Investment The terrorism designation has long acted as a major barrier to international investment. Even after the easing of certain US sanctions, many global companies and financial institutions have remained reluctant to engage with Syria because of legal and regulatory risks associated with the designation. A delisting would make it easier for foreign firms, particularly in sectors such as energy, telecommunications, infrastructure and construction, to invest in the country. Access to Reconstruction Funding Years of civil war have devastated Syria’s infrastructure, leaving the country in urgent need of reconstruction. Removing Syria from the terrorism list could pave the way for international financial institutions, including the World Bank and the International Monetary Fund, to provide development assistance, loans and reconstruction funding directly to the Syrian government. Such support could prove critical as Damascus seeks to rebuild roads, power networks, hospitals and public services. Relief From Legal Restrictions Countries designated as State Sponsors of Terrorism face significant legal challenges in US courts.
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