In a decree signed on Monday, Trump ends a "national emergency" that has been in effect since 2004 and which entailed extensive sanctions against Syria.
This is an attempt to promote and support the country's path towards stability and peace, said White House press secretary Karoline Leavitt at a press conference.
The USA will, according to Leavitt, continue to maintain sanctions against parts of the former regime, including dictator Bashar al-Assad, who fled to Russia after being overthrown by Islamist rebels in December last year.
The USA still regards Syria as a state sponsor of terrorism, a classification that may take longer to lift and which also clearly deters investment.
The EU has also lifted almost all sanctions against Syria.
Israel has continued to bomb military facilities in Syria after al-Assad's fall. But earlier on Monday, Israeli Foreign Minister Gideon Saar announced that they are interested in normalizing ties with both Syria and Lebanon.
