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In a major policy shift, President Donald Trump has lifted key U.S. sanctions on Syria, marking an end to decades of financial restrictions. The announcement came just months after the fall of the Assad regime in December 2024, and was part of Trump’s Middle East tour aimed at promoting economic recovery and peace.

The U.S. Treasury Department officially suspended enforcement of sanctions on many Syrian groups, including the country’s central bank. In addition, the State Department granted a six-month waiver on the tough Caesar Act sanctions passed by Congress in 2019. These penalties had blocked most foreign aid and investments for Syria’s post-war rebuilding efforts.

“This is part of a broader effort to move beyond the old system,” said a White House official. “We want to help rebuild the region and bring peace after years of conflict.”

Celebrations in Damascus

For many ordinary Syrians, the news was life-changing.

“I cried when I read that the Caesar Act was ending,” said Zeina Shahla, a resident of Damascus. “This gives us real hope. Maybe now we can live normal lives again.”

Before the change, sending or receiving money from abroad was difficult. Only a few companies were allowed to handle transfers, and they charged high fees. Now, people like Nael Kaddah say things will get easier.

“Anyone can now receive money from anywhere in the world,” Kaddah explained. “This helps families and businesses.”

In the streets of Damascus, people waved flags, danced, and even handed out sweets to celebrate the move. Shops stayed open late, and social media in Syria lit up with messages of thanks and excitement.

EU Follows With Its Own Sanctions Shift

While the U.S. led the way, the European Union was not far behind. In February 2025, EU leaders announced a phased plan to ease their own sanctions on Syria. They called the approach “gradual and reversible,” saying it would help support Syria’s political transition and give the country a better shot at recovery.

This shows a rare moment of unity between the U.S. and EU on Middle East policy. For years, both sides had different views on how to deal with Syria and its leadership. Now, with Assad gone and an interim government in place, many see this as a chance to turn the page.

The Caesar Act: A Powerful Tool Now on Pause

The Caesar Syria Civilian Protection Act, better known as the Caesar Act, was passed by the U.S. Congress in 2019. It aimed to punish anyone doing business with the Assad regime or its allies. This included foreign companies, aid groups, and even governments.

The law made it nearly impossible for Syria to access funding, rebuild its cities, or trade openly. It also scared off many investors who worried they might face legal trouble in the U.S.

Now, with Trump’s executive order, the law has been put on hold—at least for 180 days.

“This gives Syria a chance to breathe,” said a State Department spokesperson. “But the door can always close again if things go wrong.”

Still Some Doubts

Even with the waiver, business leaders and aid groups remain cautious. Many fear that the pause could end without warning. Others worry about the long-term future of Syria’s political scene.

“No one wants to invest in a country if they don’t know what will happen next,” said one European investor.

Human rights groups are also watching closely. Some warn that lifting sanctions too fast could help bad actors or lead to corruption during the rebuilding phase.

Syria’s Government Responds

The Syrian Foreign Ministry welcomed the decision. In a public statement, officials said that Syria “extends its hand to all who respect its sovereignty.” The message was clear: help is welcome, but foreign groups must avoid interfering in internal affairs.

The ministry also stressed that Syria’s future must be built by its own people. “We have suffered enough,” the statement read. “It is time for healing and growth.”

The next six months will be critical. Trump’s waiver is temporary, and Congress could still push back. If the interim government in Syria shows signs of success, the sanctions might be lifted for good. If not, the U.S. may bring them back.

Trump’s move has already changed the tone of talks across the region. With both the U.S. and EU easing pressure, Syria could see new trade, foreign aid, and investment for the first time in over a decade.

For the Syrian people, the road ahead will not be easy. But for the first time in years, there is a sense of hope.