WASHINGTON – President Joe Biden on Friday called on Congress to suspend normal trade ties to join the European Union and the Group of Seven industrialized nations. RussiaAllowing the imposition of new tariffs in response to ongoing invasion of ukraine,
In a speech, Biden said the US would also impose sanctions on imports of Russian diamonds, seafood and vodka, according to White House estimates, which would lead to Moscow losing more than $1 billion in export revenue.
“Putin is aggressive,” Biden said. “And Putin will have to pay a price.”
Canceling normal trade relations, which required congressional action in the United States, would end Russia’s status as a “most favored nation”, a classification within the World Trade Organization that exempts a country from tariffs. gives.
The move comes as the US and its European allies have attacked Russia after a round of economic sanctions in an attempt to squeeze Russian President Vladimir Putin. The International Monetary Fund is predicting that Russia will plunge into a “deep recession” this year.
“As Putin continues his merciless attack, the United States and our allies and allies continue to work in lockstep to increase economic pressure on Putin and isolate Russia on a global scale,” Biden said.
The president said he would also sign an executive order banning US exports of high-end goods frequently purchased by the Russian elite, including watches, luxury vehicles, clothing and jewelry. The White House estimated the value of the luxury items under the ban at $550 million a year.
Biden said he spoke to Ukrainian President Volodymyr Zelensky on Friday morning and reiterated his support for the country.
Ending trade ties with Russia is likely to get bipartisan support in Congress. Earlier this week, house passed law On a 414-17 vote that banned imports of Russian oil and energy products and took steps to review Russia’s WTO involvement.
Biden thanked House Speaker Nancy Pelosi, D-Calif., for agreeing to end normal trade relations with Russia on Friday, as long as Biden said he would “keep all our key allies fully united”. Can line up for.”
“Many issues divide us in Washington. But standing up for democracy in Ukraine, pushing [back against] Russia’s aggression, should not be one of those issues,” Biden said. “A free world is coming together to face Putin.”
In his speech, Biden said ending normal trade relations would make it harder for Russia to do business with the US, and that coordinating the decision with other countries would be “another crushing blow to the Russian economy.”
However, it is not yet clear how much impact the move will have. Russia is not one of America’s top trading partners. Russia’s exports to the United States totaled $29 billion in 2021 and ranked as the 26th largest merchandise trade partner in 2019.
Top imports from Russia include oil and gas products – the US has already banned – as well as precious metals and stones, iron and steel, fertilizers and inorganic chemicals.