US quietly lifts sanctions on Myanmar junta allies after general hails Trump as ‘true patriot’
The U.S. has quietly lifted sanctions against key allies of Myanmar’s military junta after its leader heaped praise on Donald Trump and requested sanctions and tariffs relief.
Washington’s decision came after junta leader General Min Aung Hlaing sent a letter, dated July 11, to Mr. Trump seeking a reduction in the 40 percent tariff rate imposed on Myanmar and stating he was ready to negotiate a trade deal.
He also praised the president for his “strong leadership in guiding his country towards national prosperity with the spirit of a true patriot”.
The U.S. Treasury removed sanctions from four individuals and three companies allied to the junta on Thursday without explanation.
The sanctions related to KT Services & Logistics and its founder, Jonathan Myo Kyaw Thaung; MCM Group and its owner, Aung Hlaing Oo; Suntac Technologies and its owner, Sit Taing Aung; and Tin Latt Min, described as a close associate of Myanmar’s military leadership.
Calling the decision “extremely worrying”, Human Rights Watch said it suggested a shift was underway in U.S. policy towards the Burmese military, which overthrew Aung San Suu Kyi’s elected government in February 2021 and was implicated in crimes against humanity and genocide.
Ms Suu Kyi, 80, has entered a fifth year in detention amid mounting concerns for her well-being. The Nobel Peace Prize winner faces 27 years in jail on charges widely seen as politically motivated to sideline her from political life. An Independent documentary last year explored the political choice that saw her abandoned by international allies who once lauded her as an icon of democracy.
In his letter, Gen Aung Hlaing urged the U.S. president “to reconsider easing and lifting the economic sanctions imposed on Myanmar as they hinder the shared interests and prosperity of both countries and their peoples”.
He proposed that the U.S. cut its tariff rate by 10-20 percent in return for Myanmar slashing its levy on American imports to a range of zero to 10 percent.
John Sifton, Asia advocacy director at Human Rights Watch, described the U.S. decision as “shocking,” although its motivation remained unclear. “The action suggests a major shift is underway in U.S. policy, which had centered on punitive action against Myanmar’s military regime, which only four years ago carried out a coup d’etat against a democratically elected government and is implicated in crimes against humanity and genocide,” he said.
“The decision will cause deep concern among victims of the Myanmar military and everyone who has been fighting and advocating for a return to democratic rule in Myanmar.”
Though one of Southeast Asia’s most impoverished countries, Myanmar is a major global source of rare earth minerals, a resource that Mr. Trump appears keenly interested in, pursuing deals with countries like Ukraine that supply them. Securing supplies of critical rare earths is a major focus of the Trump administration in its strategic competition with China, which accounts for approximately 90 percent of the world’s rare earth processing capacity.
Michael Faulkender, U.S. deputy secretary of the Treasury said in a statement: “Anyone suggesting these sanctions were lifted for an ulterior motive is uninformed and peddling a conspiracy theory driven by hatred for President Trump. Individuals, including in this case, are regularly added and removed from the Specially Designated Nationals and Blocked Persons List (SDN List) in the ordinary course of business.”
The decision to lift sanctions is a significant departure from the previous Biden administration’s approach of isolating the junta and penalising those enabling its grip on power.
Some of the companies now removed from the U.S. sanctions list were originally sanctioned under the Biden administration. They were accused of providing arms, equipment, and financial support to Myanmar’s military junta in the wake of the 2021 coup that ousted the elected government and triggered widespread violence and repression.
