US Congress decided April 7 to suspend permanent normal trade relations, or "most favored nation" trade status with Russia following its invasion of Ukraine, a step that will enable higher duties on American imports of metals and other goods from Russia.
US Congress Approves Bill to Revoke Russia’s and Belarus’s MFN Trade Status
Legislation Heads to President Biden After Bipartisan Approval
On April 7, the US Senate passed a modified version of a bill to suspend Permanent Normal Trade Relations (PNTR)—commonly referred to as Most Favored Nation (MFN) status—for Russia, with the House of Representatives voting later that day to approve the amended version. The bill now heads to President Joe Biden for his signature.
The legislation also removes MFN status from Belarus, citing its support for Russia’s military invasion of Ukraine.
“There will be more pressure on President Vladimir Putin in the wake of this announcement, and I am glad the Biden Administration made it,” said House Ways and Means Committee Chairman Richard Neal (D-MA), who co-sponsored the bill. “These critical, bipartisan Ways and Means bills finally will become law and Putin will face further pressure and isolation.”
Neal added: “We in Congress must do everything we can do to put an end to the slaughter of innocent civilians, destruction of cities, and an assault on democracy in Ukraine.”
Energy Imports Ban Also Approved
In addition to suspending MFN status, both chambers of Congress passed legislation to ban the import of Russian energy products, signaling a broader move to economically isolate Russia in response to its actions in Ukraine.
Impact on Tariff Rates and Metal Imports
The US Harmonized Tariff Schedule (HTS), maintained by the US International Trade Commission (ITC), outlines two primary duty categories: column 1 (favored trade partners) and column 2 (non-favored). Revocation of MFN would subject Russian and Belarusian imports to the higher column 2 duties.
For metals, this shift could result in:
- Up to 18.5% duties on most unwrought aluminum
- 100% duties on magnesium
- 45% on cobalt alloys
- 25% on nickel sulfate
- 20% on finished steel products
Senate Finance Chair Calls Russia a "Pariah State"
Senate Finance Committee Chairman Ron Wyden (D-OR), co-introducer of the MFN repeal bill, praised the passage: “Putin’s Russia has no place in the international economic order that has held since World War II. Ending normal trade relations drives home that Putin has made Russia a pariah state.”
The measure also gives the president authority to reinstate MFN status for Russia and Belarus or resume trade in energy products under certain conditions, subject to Congressional oversight and potential override.
