US Lifts Sanctions on Myanmar Junta Allies After General Praises Trump

U.S. Lifts Sanctions on Allies of Myanmar's Military Rulers

The United States has removed several individuals and entities linked to Myanmar's ruling military from its sanctions list, a move that has raised concerns among human rights organizations and advocates for democratic reform in the country. This decision comes just two weeks after the head of Myanmar's junta praised former President Donald Trump and requested a reduction in trade tariffs.

Human Rights Watch has expressed deep concern over the action, calling it "extremely worrying" and suggesting that there may be a significant shift in U.S. policy toward Myanmar's military. The military, which overthrew a democratically elected government in 2021, has been accused of committing crimes against humanity and genocide.

According to a notice from the U.S. Treasury Department, the following entities and individuals have been removed from the sanctions list:

• 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
• Tin Latt Min, another close associate of the military rulers

KT Services & Logistics and Jonathan Myo Kyaw Thaung were added to the sanctions list in January 2022 under the Biden administration, marking the first anniversary of the military takeover that led to widespread unrest in Myanmar. Sit Taing Aung and Aung Hlaing Oo were also placed on the list in the same year for their involvement in Myanmar’s defense sector. Tin Latt Min was added in 2024 as part of efforts to mark the third anniversary of the coup.

The U.S. Treasury Department did not provide an official explanation for the removal, and the White House has not yet responded to requests for comment.

Military General Requests Tariff Reduction

On July 11, Myanmar's ruling military general, Min Aung Hlaing, sent a letter to Trump requesting a reduction in the 40% tariff rate on Myanmar's exports to the U.S. He also offered to send a negotiating team to Washington if needed. The letter praised Trump's leadership and his commitment to national prosperity.

In response to a letter from Trump about the upcoming tariff, Min Aung Hlaing proposed reducing the rate to between 10% and 20%. In exchange, Myanmar would lower its own import duties on U.S. goods to a range of zero to 10%. Additionally, he asked Trump to reconsider lifting economic sanctions imposed on Myanmar, arguing that they hinder mutual interests and prosperity.

Strategic Importance of Rare Earth Minerals

Myanmar is a key supplier of rare earth minerals, which are essential for high-tech defense and consumer products. Securing these resources is a strategic priority for the Trump administration, especially in its competition with China, which controls 90% of global rare earth processing capacity.

Most of Myanmar’s rare earth mines are located in areas controlled by the Kachin Independence Army (KIA), an ethnic group engaged in conflict with the junta. These minerals are often processed in China.

Concerns from Human Rights Advocates

John Sifton, Asia advocacy director at Human Rights Watch, described the U.S. decision as “shocking” and questioned the motivations behind it. He noted that the U.S. had previously focused on punitive measures against Myanmar’s military regime, which overthrew a democratically elected government four years ago.

“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,” Sifton said in a statement.

This development marks a potential shift in U.S. foreign policy toward Myanmar, raising questions about the balance between economic interests and human rights concerns.