Russia introduces increased import duties for goods from the US

The Russian Federation introduced reciprocal duties against American goods. True, these tariffs compensate for only $ 87.6 million out of $ 537.6 million in losses from US restrictions.
Russia is responding to US protective tariffs, introduced in March - it is about raising the rates of import duties (from 25% to 40%) on US goods. As the Economy Ministry reported today, Prime Minister Dmitry Medvedev signed a relevant resolution. According to the estimates of the department, these measures so far compensate for only $ 87.6 million out of $ 537.6 million damage from US trade restrictions. Further actions can be taken either after the decision of the WTO dispute resolution body on the non-compliance of US actions with the organization's rules, or as early as March 2021.

The head of the government, Dmitry Medvedev, signed a decree on the introduction of compensatory measures by Russia in response to US use of additional import duties on steel and aluminum, the Economy Ministry said today. Washington has since March 23 introduced protective tariffs of 25% and 10% on the supply of steel and aluminum, in respect of a number of suppliers (in particular, Russia, China, Turkey). About the preparation of response measures, the head of the department Maxim Oreshkin reported two weeks ago (see "Kommersant" on June 20). Compensatory measures introduced by Russia will consist in additional increased rates of import duties in the amount of 25% to 40% (depending on the value of the imported goods).

As explained by Maxim Oreshkin, increased duties will be "levied on some US goods, analogues of which are produced in Russia", "in particular, some types of road construction equipment, oil and gas equipment, tools for metal processing and rock drilling, optical fiber".

According to the estimates of the Ministry of Economics, the damage to Russian exporters from increased US duties will be $ 537.6 million. This amount, we recall, was calculated based on a 25% duty on steel exports from Russia to the US ($ 1.5 billion of exports) and 10% exports of aluminum ($ 1.6 billion). However, the effect of the retaliatory measures is estimated much more modestly - the increase in Russian duties at the first stage will be able to compensate only $ 87.6 million. Russia will be able to introduce further measures either from March 21, 2021 - after three years from the beginning of the US increased duties, or after the decision of the body on the resolution of disputes by the WTO on the discrepancy of US actions with the rules of the organization.

Russia, as well as China, India, the EU, Mexico and Norway have already initiated a dispute in the WTO. At the end of June, a request was sent for consultations - if they do not work, then "Russia will ask the WTO to establish an arbitration group and refer the dispute to its consideration," the Economy Ministry said. Other countries have already announced retaliatory measures, China, for example, filed a lawsuit with the WTO and applies increased duties on the import of goods from the US to $ 3 billion, while the EU countries agreed on an increase in import duties of € 2.8 billion (or $ 3.4 billion).