US Congress votes to revoke Russia's normal trade status

US Congress voted April 7 to suspend permanent normal trade relations, also known as "most favored nation" trade status, with Russia in response to its invasion of Ukraine, a move that will allow increased duties on US imports of metals and other goods from Russia.

The measure to suspend MFN status from Russia was previously passed by the House of Representatives in March. However, the Senate approved a modified version of the legislation April 7, and the House voted to pass the amended version later in the day. The legislation will now move to President Joe Biden for signature.

The bill also revokes MFN status from Belarus for its role in aiding Russia's war efforts in Ukraine.

House Ways and Means Committee Chairman Richard Neal, a Democrat from Massachusetts who co-sponsored the bill in the House, said the MFN revocation will further pressure President Vladimir Putin as the invasion of Ukraine continues.

"Finally, these critical, bipartisan Ways and Means bills will become law and Putin will experience even greater pressure and isolation," Neal said in a statement April 7. "We in Congress must do all we can to end the slaughter of innocent civilians, total destruction of cities, and assault on democracy in Ukraine."

Along with the votes, the House and Senate each passed separate legislation to ban the importation of energy products from Russia.

The US Harmonized Tariff Schedule, compiled by the US International Trade Commission, outlines separate duty rates for favored trade partners (column 1 duties) and non-favored trade partners (column 2 duties).

The revocation of MFN status would subject US imports from Russia and Belarus to column 2 duties.

For metals, duties on US imports from Russia and Belarus could be raised up to 18.5% for most unwrought aluminum, 100% for magnesium, 45% for cobalt alloys, 25% for nickel sulfate and 20% for finished steel, according to the tariff schedule.

Senate Finance Committee Chair Ron Wyden, a Democrat from Oregon who co-introduced the MFN revocation bill in the Senate, applauded the passage of the legislation.

"Putin's Russia does not deserve to be a part of the economic order that has existed since the end of World War II," Wyden said in a statement April 7. "Ending normal trade relations hammers home that Putin has made Russia into a pariah state."

Wyden said the bill provides the president with authority "to return normal tariff treatment for Russia and Belarus, as well as resume trade in Russian energy products, subject to certain conditions and congressional disapproval."

Source: US International Trade Commission