On June 27, 2022, President Joseph Biden issued a Presidential Proclamation announcing that the United States was increasing the duty rate to 35% ad valorem on certain products from Russia effective July 28, 2022. The White House indicated that this higher tariff will affect “more than 570 groups of Russian products worth approximately $2.3 billion”; however, the specific Harmonized Tariff Schedule of the United States (HTSUS) list of such products has not yet been released. The list of products and categories covered reportedly includes steel and aluminum; minerals, ores and metals; chemicals; arms and ammunition; wood and paper products; aircraft and parts; and automotive parts. Pursuant to the proclamation, goods from Belarus will face a similar increase in import tariffs.

This trade action follows earlier passage of the Suspending Normal Trade Relations with Russia and Belarus Act, which effectively ended normal trade relations by suspending permanent normal trade relations (PNTR) between the United States and Russia and the United States and Belarus. The removal of PNTR status included the withdrawal of “most favored nation” tariffs, resulting in higher tariffs on goods imported from Russia and Belarus. The law also gave the president authorization to increase the duties applicable to products imported from these two countries. See Update of April 11, 2022.

In addition, during the G7 meetings in Germany, the United States and other G7 leaders committed to: (1) sanctioning additional Russian individuals and entities; (2) expanding targeted sanctions on Russia’s military production and supply chains; (3) further restricting Russia’s ability to participate in the global market, including prohibiting the gold imports from Russia; and (4) targeting efforts by those engaging in “evasion and backfill activities” by prohibiting identified companies from purchasing U.S.-origin goods and technology. A White House Fact Sheet broadly describing these forthcoming actions is available here.

Photo of Scott E. Diamond** Scott E. Diamond**

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor…

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor compliance, corporate anti-boycott and antibribery compliance, national security investigations, and foreign direct investment in the United States.

**Not licensed to practice law.

Photo of Samir D. Varma Samir D. Varma

Samir advises multinational corporations on export controls, economic sanctions and customs, and counsels individuals and corporations on the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. He represents clients in enforcement actions before U.S. regulatory agencies and conducts corporate internal investigations.

Photo of Francesca M.S. Guerrero Francesca M.S. Guerrero

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some…

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some of their most challenging international transactions, involving dealings in high-risk jurisdictions or with high-risk counterparties. Francesca also counsels companies through all phases of internal investigations of potential trade and antibribery violations and represents companies across industries before related government agencies.