On Friday, President Biden is expected to announce that the U.S., the G7, and the European Union will call for revoking “most favored nation” status for Russia.
Reuters explains that; Stripping Russia of its favored nation status paves the way for the United States and its allies to impose tariffs on a wide range of Russian goods, which would further ratchet up pressure on an economy that is already heading into a “deep recession.””
Two people told Reuters that each country will have to implement the change of Russia’s trading status by its own nations process.
For the U.S., this process requires “an act of Congress.”
In the United States, removing Russia’s “Permanent Normal Trade Relations” (PNTR) status will require an act of Congress, but lawmakers in both houses – and on both sides of the political aisle – have already signalled their support, two officials said.Reuters. 03/10/2022–03/11/2022.
The New York Times said yesterday that; Under the rules of the World Trade Organization, all members grant each other “most favored nation” trading status, which the United States also calls “permanent normal trade relations,” in which goods can flow at lower tariff rates between countries. If the United States suspends that trading status — as it has done for some countries in the past — the tariffs charged on Russian products would revert to rates set by the 1930 Smoot-Hawley Tariff Act.
There is nothing on the announcement posted at White House.gov at the time of writing this; 9:47 a.m. D.C., time.
His remarks are scheduled for 10:15 a.m. D.C., time.