London Daily

Focus on the big picture.
Thursday, Sep 11, 2025

US, Allies To End Normal Trade Relations With Russia

US, Allies To End Normal Trade Relations With Russia

Joe Biden announced the new step, which would enable Western nations to inflict steep tariff hikes on Moscow, in coordination with NATO allies, the Group of Seven and the European Union.

Washington and its allies moved Friday to end normal trade relations with Russia, as President Joe Biden vowed the West would make Vladimir Putin "pay the price" for his invasion of Ukraine.

Biden announced the new step, which would enable Western nations to inflict steep tariff hikes on Moscow, in coordination with NATO allies, the Group of Seven and the European Union.

On the US side, lawmakers -- who would have the final say -- have already indicated they support the step, which involves stripping Russia of the preferential status that ensures equal treatment between international trade partners.

Warning in a speech at the White House that "Putin must pay the price" as the "aggressor" in its ex-Soviet neighbor, Biden said the US move would be mirrored by similar steps in allied nations.

And in a statement issued in Berlin, G7 leaders confirmed they would each "endeavor" to take action to deny Russia favored trade status.

"The United States and our allies and partners continue in lockstep to ramp up the economic pressures on Putin and to further isolate Russia on the global stage," Biden said.

"He cannot pursue a war that threatens the very foundation of international peace and stability and then ask for help from the international community."

A key principle of the World Trade Organization, the so-called favored status known in the United States as permanent normal trade relations (PNTR) requires member countries to guarantee one another equal tariff and regulatory treatment.

Accorded by the United States to most countries in the world, with notable exceptions like Cuba and North Korea, the status grants imported goods from a country equal footing with other trading partners.

Stripping Moscow of the designation, granted in December 2012, would allow Biden to impose steep tariffs on Russian goods or restrict imports of some products.

The president also announced a ban on imports of Russian vodka, diamonds and seafood into the United States, while the Commerce Department said it would stop exports of American luxury goods to Russia and Belarus, which supported the invasion.

The new trade sanction would cap several rounds of measures intended to sever Russia's economic and financial ties with the rest of the world over its invasion of the ex-Soviet nation.

They have included banning Russian oil imports, seizing the assets of billionaires tied to President Vladimir Putin, and freezing the nation's stockpile of cash.

Together, the moves have already pushed Moscow to the brink of a debt default.

Limited impact?


Those steps have also caused prices for key commodities, like gasoline and wheat, to soar, harming US consumers already facing the highest inflation in four decades.

And trade experts are dubious about whether new tariffs would be effective.

"US direct trade with Russia is relatively small, so higher tariffs would not do much damage to them but could raise costs for our manufacturers who rely on them for key raw materials," said William Reinsch of the Center for Strategic and International Studies in Washington.

"The additional damage this does to the trading system, while not immediate, could be significant," he said in an analysis.

The United States imported just under $30 billion in goods from Russia last year, including $17.5 billion in crude oil.

The IMF said Thursday that war and the sanctions will lead to a "sharp contraction" of the Russian economy, and slower global growth.

The Washington-based crisis lender this week approved $1.4 billion in fast-disbursing aid for Ukraine, and the World Bank also released nearly $500 million of what is expected to be a $3 billion financing package to aid the war-wracked country.

US lawmakers meanwhile passed a huge spending bill on Thursday, including almost $14 billion in humanitarian and military aid for Kyiv as the Russian invasion entered its third week.

The $13.6 billion relief package is more than double what the Biden administration initially requested, and includes aid for refugees, the military and support for NATO allies in eastern Europe.

Newsletter

Related Articles

0:00
0:00
Close
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
Generations Born After 1939 Unlikely to Reach Age One Hundred, New Study Finds
End to a four-year manhunt in New Zealand: the father who abducted his children to the forests was killed, the three siblings were found
Germany Suspends Debt Rules, Funnels €500 Billion Toward Military and Proxy War Strategy
EU Prepares for War
BMW Eyes Growth in China with New All‑Electric Neue Klasse Lineup
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
×