The United States, the Group of Seven nations, and the European Union will move today to revoke Russia’s “most favored nation” status over its ongoing and intensifying invasion of Ukraine.
The White House said that President Joe Biden will announce this. Morning “actions to continue to hold Russia accountable,” but gave no further details about what they will be. People familiar with the matter told Reuters that Biden will announce the plans to remove this status.
By stripping Russia of the “favored nation” status, the U.S. and allied countries will pave the way for a wide range of tariffs to be imposed on Russian goods. This will further increase economic pressure on Russia, which is already heading into a “deep recession.”
The move is a coordinated one between Washington, London, and other allies. It comes on top of a pile of unprecedented sweeping sanctions, export controls and banking restrictions against Russia. The economic efforts are meant to pressure Russian President Vladimir Putin to end the invasion of Ukraine.
In the United States, removing the “Permanent Normal Trade Relations” status will require an act of Congress. Lawmakers in both the House and the Senate, on both sides of the typically-divided aisle, have already signaled mass support. There has been rare bipartisan support for nonmilitary efforts to punish Russia. Some have already made direct calls to remove the WTO status.
The sanctions against Russia’s banks and elites by the U.S. have been unprecedented and sweeping. The Russian economy is cratering from the economic moves.
The International Monetary Fund predicts that the economic measures will plunge Russia into a “deep recession.”
Top imports from Russia that would face higher tariffs include mineral fuels, precious metal and stone, iron and steel, and fertilizers and chemicals.
Last week, Canada already took the step to remove the most favored nation status for Russia.
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