America and allies will give preferred trade status to Russia

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America and allies will give preferred trade status to Russia

Mr Greser said the Smoot-Hawley tariffs of the 1930s were designed to impose higher tariffs on imports of manufactured goods and agricultural products, but lower rates on imports of raw materials to limit costs for American factories. . As a major energy and minerals producer, much of what Russia sends to the United States falls into those categories.

For example, US tariffs on palladium, which is used in catalytic converters, will remain at 0 percent before and after the change, according to Mr. Grasser’s research. Tariffs on other important exports from Russia, such as king crab, uranium and urea, which are used in fertilizers, will also remain at 0 percent.

Tariffs will be slightly higher for other products, such as aluminum alloys, birch faced plywood, bullets and some steel products.

Energy imports from Russia – which last year accounted for about 60 percent of US imports from Russia – will face slightly higher tariffs. But Mr Biden already announced earlier this week that the United States would halt all shipments of Russian oil, gas and coal, a far more comprehensive measure.

Mr Greser said revoking Russia’s preferential trading status would impose some penalties, “but not very significant in most cases.”

“It may nonetheless be an appropriate symbolic and moral gesture, especially if several WTO members are involved,” he wrote. “But as a policy measure specifically to impose economic costs, the energy import ban has practical real-world implications.”

Other governments can challenge these measures by bringing a case against the United States, the European Union, or other countries at the World Trade Organization, but the global trade body provides major exceptions for actions taken to protect national security, and the United States America and Europe can cite it. their defense.

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Katie Edmondson And Katie Rogers Contributed to reporting.

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