U.S. to revoke Russia trade status

The U.S., European Union, and the Group of Seven countries announced plans on Friday to demote Russia as a “most favored nation” for trade. President Joe Biden still needs congressional approval, which will likely come next week. The status means that Russia can trade with those countries under the best possible terms: low tariffs, few barriers, and the highest-possible imports. Each member country will follow its own process to implement the change.

If passed, what does this affect? Some seafood and cars are about to get more expensive as some of the U.S.’s biggest imports from Russia are crabs and steel. Biden signed an order Friday that prohibits the export or sale of American luxury goods like jewelry and pricey cars to anyone in Russia. The order also bans imports of Russian diamonds and vodka. The move is meant to pressure Russian elites close to President Vladimir Putin to discourage the invasion of Ukraine. 

Dig deeper: Read Esther Eaton’s report in The Stew on how U.S. leaders are looking for alternative energy sources while slashing Russian oil imports.