US lifts sanctions on Myanmar junta allies after general praises Trump

WASHINGTON – The US lifted sanctions designations on several allies of Myanmar’s ruling generals on July 25, two weeks after the head of the ruling junta praised US President Donald Trump and called for an easing of sanctions in a letter responding to a tariff warning.

A notice from the US Treasury department said KT Services & Logistics and its founder Jonathan Myo Kyaw Thaung; the MCM Group and its owner Aung Hlaing Oo; and Suntac Technologies and its owner Sit Taing Aung; and another individual, Mr Tin Latt Min, were being removed from the US sanctions list – a move that Human Rights Watch (HRW) called “extremely worrying”.

The US Treasury Department did not explain the reason for the move, and the White House did not immediately respond to a request for comment.

Myanmar is one of the world’s main sources of sought-after rare earth minerals used in high-tech defence and consumer applications.

Securing supplies of the minerals is a major focus for the Trump administration in its strategic competition with China, which is responsible for 90 per cent of rare earth processing capacity.

Most of Myanmar’s rare earth mines are in areas controlled by the Kachin Independence Army, an ethnic group fighting the junta, and are processed in China.

KT Services & Logistics and Mr Jonathan Myo Kyaw Thaung were added to the sanctions list in January 2022 under then US President Joe Biden’s administration, in a step timed to mark the first anniversary of the military’s seizure of power in Myanmar, which plunged the country into chaos.

Mr Sit Taing Aung and Mr Aung Hlaing Oo were placed on the sanctions list in 2022 for operating in Myanmar’s defence sector.

Mr Tin Latt Min, identified as another close associate of the military rulers, was placed on the list in 2024 to mark the third anniversary of the coup.

On July 11, Myanmar’s Senior General Min Aung Hlaing asked Mr Trump in a letter for a reduction in the 40 per cent tariff rate on his country’s exports to the US and said he was ready to send a negotiating team to Washington if needed.

“The senior general acknowledged the President’s strong leadership in guiding his country towards national prosperity with the spirit of a true patriot,” state media said at the time.

In his response to a letter from Mr Trump notifying Myanmar of the tariff to take effect on Aug 1, Gen Min Aung Hlaing proposed a reduced rate of 10 per cent to 20 per cent, with Myanmar slashing its levy on US imports to a range of 0 per cent to 10 per cent.

Gen Min Aung Hlaing also asked Mr Trump “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”.

Mr John Sifton, Asia advocacy director of HRW, called the US move “shocking” and its motivation unclear.

“The action suggests a major shift is under way in US policy, which had centred 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 in an e-mailed statement.

“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.”