President Joe Biden moved on Tuesday to strike Cuba from a US terrorism blacklist while Havana announced plans to “gradually” free hundreds of prisoners, twin decisions reshaping bilateral ties ahead of Donald Trump’s return to office.

The administration aims to reverse Trump’s 2021 terrorism designation and ease sanctions, pending congressional review and the incoming administration. The plan includes lifting restrictions on transactions with Cuban entities and limiting property claims stemming from the 1959 revolution.

“In our review, what we found is that there is no credible evidence at this time of ongoing support by Cuba for international terrorism,” a US official said.

Following discussions with the Vatican dating to 2023, Cuban President Miguel Diaz-Canel pledged to release 553 inmates. The announcement comes after international backlash over Cuba’s detention of protesters during the July 2021 unrest.

“Anything that they’re doing right now we can do back, and no one should be under any illusion in terms of a change in Cuba policy,” Trump’s national security adviser Mike Waltz told Fox News.

In a letter to Congress, Biden called the moves “necessary to the national interests of the United States and will expedite a transition to democracy in Cuba.”

While Cuba said that the decision was a step in the right direction, it accused Washington of continued economic warfare. The island nation faces acute shortages that have prompted more than 1 million Cubans to emigrate since 2020.

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