Russian Platinum, Fertilizers, Nuclear Fuels Will Not Be Subject to 35% Tariffs
Of the top 15 exports from Russia last year to the U.S., three were already banned and only two of the others will see its tariff rate hiked to 35%, the rate President Joe Biden announced during his trip to Europe.
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Before the invasion of Ukraine, Russia's top three exports to the U.S. were oil products, and those are all banned.
Semi-finished iron or nonalloy steel and industrial diamonds are the only high-volume imports that will see a change in tariffs as a result of the action; it will go from a 25% tariff to a 35% tariff, in addition to the 25% tariff already due on the product.
The full list of 8-digit Harmonized Tariff Schedule codes that will be taxed at 35% will be published in the Federal Register June 30, and is now available. The higher tariffs will take effect July 27. Past imports of the goods that will be subject to the 35% tariff were about $2.3 billion annually (see 2206270030).
Some products that were high-volume exports from Russia that are not on this new list do face higher tariffs under Column 2 than they did before Congress removed Russia from most-favored nation status. For instance, the tariff on imported frozen crabs in shells doubled to 15%. The tariff on pig iron went from 0 to $1.11/ton. Pig iron was $1.16 billion worth of Russian exports to the U.S. last year.
In one case, specialty plywoods, the Column 2 heading is higher than 35% -- either 40% or 50%, depending on the wood species. Russia exported almost $318 million of these veneers last year.
But palladium and rhodium, which accounted for a combined $2.35 billion in imports last year, continue to enter duty-free under Column 2 rates. Nuclear fuels, which were the ninth-largest export last year with more than $645 million worth of sales, will also remain duty-free. Fertilizers and the chemicals used in fertilizers are not going to be subject to the 35% tariffs and will remain duty-free.
The presidential proclamation said: "These measures will restrict Russia’s ability to benefit economically from sales to the U.S. market and are carefully calibrated to impose costs on Russia, while minimizing costs to U.S. consumers."