Senate Finance Chairman Says PNTR for Russia Should End; Hoyer Says Bill Likely to Move in House

"We need to make sure tariff treatment of Russia reflects its pariah status. Permanent normal trade relations are extended to countries as they join the World Trade Organization (WTO) and agree to abide by rules that ensure a level playing field in international trade. Removing normal trade relations will raise tariffs on Russian goods and send a message that unprovoked invasions of a foreign nation will not be tolerated in any arena," he said in a March 1 statement.

Sen. Mike Crapo of Idaho, the top Republican on the committee, told International Trade Today during a hallway interview March 1: "I'm intrigued by [the idea of removing PNTR], and am looking at it very closely. I think we have to be as strong against Russia as we possibly can. I haven't decided whether to push that yet, but it's something that I'm very interested in."

Other Finance Committee members said interviews at the Capitol the same day agreed. Sen. Debbie Stabenow, D-Mich., said it should be looked at. Sen. Todd Young, R-Ind., said, "We probably should. It sounds like the sort of thing that merits a congressional hearing right now." Sen. Pat Toomey, R-Pa., never a proponent of hiking tariffs, said, "I think everything has to be on the table."

Finance Committee Member Sen. Rob Portman, R-Ohio, first brought up the issue in the Senate, and he said on a phone call with reporters March 1 that even though Russia received permanent normal trade relations treatment as it joined the World Trade Organization, the U.S. and other countries can stop granting most favored nation tariffs because of the invasion of Ukraine

“Free trade with the United States is a privilege, not a right. And I think Russia should be cut off from PNTR," Portman said. "I encourage other countries to do that as well. Invading a sovereign nation, an independent democracy no less, is certainly grounds to take that privilege away. We have the right to do it and we should do it.”

There has already been legislation introduced in the House to end Russia's PNTR (see 2202250020), and Majority Leader Steny Hoyer, D-Md., who controls the floor schedule, said on a press call that he thinks that legislation is worth doing. "We need to take every possible action ... to make this criminal behavior by Mr. Putin and by the Russian military have very, very serious consequences." He said the bill needs to go through committee, but he believes "that this is going to get prompt attention, and as soon as it does, … I am inclined to support assuring that there are very adverse consequences for Russia’s criminal behavior."

House Ways and Means Committee ranking member Kevin Brady, R-Texas, told ITT during a press call that while Democrats have not reached out to Republicans on the committee yet, he said, "I'm certainly open to changing Russia’s tariff treatment in light of the fact that they’re making a mockery of the rule of law."

In addition to considering hiking tariffs, some senators are proposing an outright ban on oil imports from Russia. Most of what the U.S. imports from Russia is oil.

Sen. Joe Manchin, D-W.Va., issued a statement that said, "I am calling on the Administration and industry partners to take action immediately, up to and including banning crude oil imports from Russia." He also said this war should spur the U.S. to ramp up domestic energy production.

Sen. Ed Markey, the Senate sponsor of the Green New Deal, said he's introducing a bill called Severing Putin's Immense Gains from Oil Transfers, or SPIGOT. Markey said, "There is no separating Russian oil from the corruption and human rights abuses of the Putin regime. We cannot criticize Europe for its reliance on Russian energy, as we pour dirty oil money into Russia. We cannot stop Putin with Russia’s gas in our cars. Our global addiction to oil keeps us locked into dangerous cycles of conflict and corruption, but we can choose a cleaner path to peace."

Markey said that 7% of imported crude oil and petroleum products comes from Russia, second only to Canada, and that in 2021, U.S. firms spent about $14.4 billion on those oil imports. His bill would prohibit importing crude oil and petroleum products from Russia unless the administration said such a ban would either hurt America's natural security or "would unduly impact energy prices for United States consumers."

Brady said punishing Russia should take precedence over concerns about gas price inflation. He added, "My sense is that momentum is building among Democrats and Republicans on an import ban of some design."