President Donald Trump issued an executive order (EO) earlier this month announcing sweeping “reciprocal” tariffs on imports from countries across the world. One country missing from the EO’s increased tariffs was Russia, despite its ongoing trade surplus with the United States. In response to the scrutiny this has drawn, the White House offered existing U.S. sanctions on Russia as the basis for its exclusion.
While the EO’s more substantial “reciprocal” tariffs are currently suspended (except for China), these discussions raise the question for U.S. importers of how U.S. sanctions and tariffs currently apply to Russian imports into the United States. They also bear close and ongoing monitoring because they could change quickly as part of negotiations over the conflict in Ukraine.
Key Sanctions Affecting Russian-Origin Imports into the United States
Russia Sanctions Overview. Russia has for years been subject to extensive economic sanctions and export controls by the United States for a range of malign activities, including malicious cyber-enabled activities, human rights abuses and corruption, chemical weapons use, weapons proliferation and most notably its operations in Ukraine since 2014.
In response to Russia’s 2022 full-scale invasion of Ukraine, the United States substantially expanded its economic sanctions and export controls on Russia, significantly restricting U.S. transactions involving the Russian economy. While much focus has been placed on extensive export and other restrictions, such as sectoral and blocking sanctions; military end-user restrictions; export controls on industrial, luxury and high technology goods; and the crude oil price cap, among others, U.S. sanctions have specifically included discrete import restrictions that U.S. importers must take into account. U.S. sanctions have further established prohibitions on dealings with individuals and entities in or affiliated with Russia that have the effect of restricting the importation of goods and services into the United States.
Sanctions on Russian Imports. Since early 2022, U.S. sanctions have specifically prohibited the importation of a number of specified Russian-origin products into the United States. Broadly, these sanctions include prohibitions on imports of Russian-origin energy products, fish, seafood, alcoholic beverages, certain diamonds and diamond jewelry and certain metals as specified in the relevant orders, determinations and legislation, subject to certain conditions, exceptions and authorizations.
More specifically, the sanctions were established between March 2022 and April 2024 as follows:
- On March 8, 2022, EO 14066 prohibited the importation into the United States of Russian-origin crude oil; petroleum; petroleum fuels, oils and products of their distillation; liquefied natural gas; coal; and coal products.
- On March 11, 2022, EO 14068 prohibited importation into the United States of Russian-origin fish, seafood, and preparations thereof; alcoholic beverages; and non-industrial diamonds.
- On April 8, 2022, President Joe Biden signed into law the Ending Importation of Russian Oil Act (P.L. 117-109), codifying in legislation the energy-related import restrictions established in Executive Order 14066.
- On June 28, 2022, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a determination under Executive Order 14068 prohibiting the importation into the United States of Russian-origin gold.
- On Dec. 22, 2023, OFAC issued a determination prohibiting the importation to the United States of salmon, cod, pollock and crab produced wholly or in part in Russia or harvested in waters under Russian jurisdiction or by a Russia-flagged vessel, even when they have been substantially transformed into other products outside of Russia. This determination added to the existing prohibitions on imports of Russian-origin fish and seafood and preparations thereof.
- On Feb. 8, 2024 (effective March 1, 2024), OFAC issued a determination prohibiting the importation to the United States of Russian-origin diamond jewelry and unsorted diamonds.
- On Feb. 8, 2024 (effective in relevant part on March 1, 2024 and Sept. 1, 2024), OFAC issued a determination prohibiting the importation to the United States of certain categories of diamonds that were mined, extracted, produced or manufactured wholly or in part in Russia, even when they have been substantially transformed into other products outside of Russia.
- On April 12, 2024, OFAC issued a determination prohibiting the importation to the United States of Russian-origin aluminum, copper and nickel produced on or after April 12, 2024.
OFAC’s website has Frequently Asked Questions that clarify the classification of items subject to import restrictions based on their Harmonized Tariff Schedule headings or subheadings (see FAQs 1027, 1157, 1164, and 1170). U.S. economic sanctions continue to restrict such imports into the United States unless otherwise excepted or licensed by OFAC, and companies should carefully consider these provisions.
Sanctions on Individuals and Entities Affecting Imports. Beyond specifically targeting specified imported goods, the United States has also sanctioned thousands of Russian nationals and entities across a range of Russian economic sectors – from financial services to energy to shipping. Of note, many of these individuals and entities are subject to “blocking” sanctions and identified on OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List. U.S. persons are generally prohibited from engaging in unlicensed transactions with SDNs, as well as entities that they own 50% or more.
Because of the large number of SDNs across the Russian economy, including Russian financial institutions needed to process import-related payments, targeted U.S. sanctions have created additional restrictions on the extent to which Russian-origin goods and services may be imported into the United States. U.S. importers must continue to screen their business partners to avoid transacting with an SDN (or an entity it owns 50% or more) without required U.S. government authorization.
Prohibited Port Access for Russian-Affiliated Vessels. In addition, pursuant to Presidential Proclamation 10371 of April 21, 2022, the United States prohibited, with limited exception, the entry of Russian-affiliated vessels to U.S. ports. These include vessels that are Russian-flagged, Russian-owned and Russian-operated. President Trump renewed the prohibition earlier this month. As a result, it remains in effect and continues to create an additional barrier to Russian imports into the United States.
A Note on Regions of Ukraine. While not part of Russia, specified regions of Ukraine have been targeted by U.S. import sanctions because of Russian action and influence. Specifically, in response to Russia’s occupation of Crimea in 2014 (EO 13685) and its purported recognition of the so-called Donetsk People’s Republic and Luhansk People’s Republic (EO 14065), the United States prohibited the importation, directly or indirectly, of any goods, services or technology into the United States from these regions. U.S. importers should continue to be mindful of these sanctions on imports from covered regions of Ukraine.
Tariffs on Russian-Origin Imports as a Response to the War in Ukraine
Apart from triggering the imposition of import-related sanctions, Russia’s conduct in Ukraine likewise prompted increased tariffs on many Russian products, tariffs that remain in effect. Congress in 2022 passed the Suspending Normal Trade Relations with Russia and Belarus Act (P.L. 117-110), requiring higher duty rates, identified in Column 2 of the Harmonized Tariff Schedule, for all Russian (and Belarussian) products.
In June 2022, Biden increased the duty rates to 35% on certain Russian imports, including specified steel, aluminum, chemicals, minerals, arms, wood paper products, aircraft and aircraft parts and automotive products, among other goods. Then, in February 2023, Biden further raised tariffs on a number of Russian metals, minerals and chemical products to 70%, and on aluminum to 200%. These tariff rates remain in effect.
Outlook
While the United States continues to import some Russian-origin products, it is critical that importers continue to carefully assess the applicability of U.S. sanctions and tariffs to their transactions.
The Trump administration has generally maintained the sanctions and tariffs that the United States imposed on Russia in response to the conflict in Ukraine (and Russia’s other malign activities). Some of these measures would require consultation with and certification to Congress to be lifted. Trump has at different times suggested the possibility of both an easing of Russia sanctions, as well as an increase in Russia sanctions and tariffs, all as part of negotiations over the conflict in Ukraine. Most recently, the administration’s proposed terms for peace in Ukraine reportedly include a broad lifting of sanctions the United States has imposed on Russia since 2014.
As such, the landscape of sanctions and tariffs on Russia remains complex and could change rapidly with significant implications for U.S. and foreign businesses. Miles & Stockbridge’s international trade lawyers are monitoring developments and are available to answer any questions on this and other trade topics.
Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.
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