New US Trade Sanctions and Tariffs on The Way for Russia

The US marked one year of Russia’s invasion of Ukraine by imposing new trade sanctions and import tariffs on Russia.

Continuing the streak of sanctions and export control measures imposed on Russia ever since its Ukraine evasion, the US has come up with new sanctions and tariffs targeting the largest financial institutions and defense industrial base. US Congress also revoked the permanent normal trade relations status of Russia. This means higher taxes imposed on hundreds of Russian imports in the US.

What Are the New Sanctions and Tariffs Imposed?

Import Tariffs

The US government signed two proclamations on Feb 24 imposing import tariffs.

• The first proclamation, going effective on April 1, increases tariffs by 35-70 percent on over 100 Russian minerals, chemical products, and metals.
• The second proclamation has two sets of tariffs: A 200 percent tariff on Russian pure and derivative aluminum goods applicable from March 10. A 200 percent tariff on pure and derivative aluminum goods including any quantity of Russian smelted aluminum or casted in Russian applicable from April 10.

Export Tariffs

The US Department of Commerce adds around 90 Russian and third-country companies (found evading sanctions and supporting Russia’s defense sector) to the Entity list. The targeted companies will no longer be able to obtain any items (like semiconductors) produced wholly/partially in the US or using US technology in any way.

BIS, DOC is also in action with G-7 partners and allies to implore similar measures on other items like industrial equipment, luxury articles, etc.

BIS also amended the Export Administrations Regulations (EAR) to pass restrictions preventing Iranian drone components from making inroads into the Ukrainian battlefield.

Trade Sanctions

The State and Treasury Departments imposed sanctions on over 200 entities from Russian and third countries including the Middle East, Asia, and Europe. This also means:

• Sanctions were imposed on other entities related to the Russian defense and technology industry and found evading Russian sanctions or illegally stocking sanctioned goods.
• Target on Russian future energy sources.
• Sanctions imposed on the Russian metal and mining sector too.

As the list of sanctions and tariffs continues to grow and interrupt trade between countries, you must keep pace to ensure full compliance for your business and avoid penalties. Trademo Compliance can help you with this.