International Terrorism Deterrence Act of 1985

International Terrorism Deterrence Act of 1985 - Directs the Secretary of State to: (1) identify and publish the name of each foreign state that provides support for acts of international terrorism; and (2) publish any determination that such a foreign state has ceased providing support for acts of international terrorism. Requires the Secretary to report annually to the Congress the names of each foreign state identified as supporting international terrorism. Sets forth sanctions that the President shall impose on such countries.

Expresses the sense of the Congress that the President should negotiate with U.S. allies an agreement to impose against a country identified as supporting international terrorism sanctions that are similar to the sanctions imposed by the United States. Authorizes the President to waive such sanctions if the President determines that such a waiver is in the national economic interest of the United States.

Establishes within the Treasury an Anti-Terrorism Trust Fund. Provides for funding the Trust Fund. Directs the Secretary of the Treasury to report annually to congressional committees on the Trust Fund.

Authorizes the President to consider any act of terrorism against a U.S. citizen, U.S. property, or U.S. interests to be an unusual and extraordinary threat against the U.S. national security, foreign policy, or economy within the meaning of the International Emergency Economic Powers Act.