Russia Loses "Most Favored Nation" Trade Status

In another hard economic blow to Putin's pariah regime, the U.S. announced the revocation of "most favored nation" status the Russia has enjoyed for decades. According to the Associated Press:

"President Joe Biden is announcing Friday that, along with the European Union and the Group of Seven countries, the U.S. will move to revoke 'most favored nation' trade status for Russia over its invasion of Ukraine. [snip]

Stripping most favored nation status from Russia would allow the U.S. and allies to impose higher tariffs on some Russian imports, increasing the isolation of the Russian economy in retaliation for the invasion. [snip]

The White House said Biden would announce 'actions to continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine.'

The earlier sanctions on imports of Russian oil, gas and coal cut off about 60% of U.S. imports from the country.

Most favored nation status has been a baseline for global trade, ensuring that countries within the World Trade Organization are treated similarly. Some countries in the WTO have special privileges due to their status as developing economies. Russia would join the ranks of Cuba and North Korea by not having MFN status from the U.S."  (our emphasis)

The article notes that the impacted Russian products that would receive higher tariffs include "unwrought aluminum, plywood, semi-finished steel and diamonds..." Ukrainian President Zelenskyy called on the U.S. and its allies to withdraw the status from Russia as a punishment for its unprovoked attack on Ukraine.