The White House says it is imposing "new economic actions" against Russia to hold the Kremlin accountable for Moscow's continued unprovoked assault on Ukraine and further isolate Russia from the global financial system.
In announcing the measures on March 11, U.S. President Joe Biden said that in unison with the G7 group of wealthy nations, Washington will revoke Russia's "permanent normal trade relations" status, commonly referred to as most-favored nation status, to punish President Vladimir Putin over his invasion of Ukraine.
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"The free world is coming together to confront Putin," Biden said from the Roosevelt Room of the White House.
He also said countries were adding new names to a list of Russian oligarchs who are facing sanctions, and the United States is cutting the flow of high-end American products such as expensive watches, cars, and clothing.
“We’re banning the export of luxury goods to Russia," he said.
Biden said there would be further retaliation if Ukraine is targeted with chemical weapons, a possibility that administration officials have warned about in recent days.
“Russia would pay a severe price if they used chemical weapons,” he said.
Biden again ruled out any direct intervention by the United States to halt Russia's invasion of Ukraine, warning that such conflict pitting the NATO alliance against the Kremlin "is World War III."
The change in trade status paves the way for the United States to impose tariffs on a wide range of Russian goods, including alcohol and seafood -- namely Russian vodka and caviar.
The White House said in a statement that the measures also include denying Russian borrowing privileges at multilateral financial institutions such as the International Monetary Fund, extending sanctions on Russian oligarchs and their families, and a ban on new investment in any sector of the Russian economy.
"Russia has now become a global economic and financial pariah," the statement said.
The new measures come on top of several rounds of crippling economic sanctions already imposed on Russia.
Putin has suggested Russia's economy can survive despite the sanctions.