March 14, 2022
Revoking Russia’s Most Favored Nation Trade Status
On March 11, President Biden announced that the United States—along with the G7, the European Union, and NATO—will revoke Russia’s Most Favored Nation (MFN) trade status. In a new insight, Data and Policy Analyst Tom Lee explains the action, and considers its economic implications for Russia, and for the United States and our Western trading partners.
- Congress has indicated it will quickly pass legislation to remove Russia’s Permanent Normal Trade Relations (PNTR) status—the United States’ specific legal designation of Russia’s MFN trade status.
- Revoking Russia’s PNTR status will allow the United States to increase and impose new tariffs on all Russian imports.
- This action will cause economic harm to Russia by damaging its ability to export to wealthier Western markets; it will also raise costs for Americans and our trading partners that may rely on affected Russian products.