Joe Biden expected to call for suspension of normal trade relations with Russia – live | US news

Joe Biden has announced that the US was moving to revoke Russia’s “most favored nation status” in coordination with allies.

Revoking Russia’s permanent normal trade relations will “make it harder for Russia to business with the United States”. He said the US was “taking the first steps” to ban imports of Russian vodka, seafood and diamonds.

Biden thanked Pelosi for pushing the US to take this action, and for holding off on a measure in Congress until he “could line up all of our key allies.”

“Putin is the aggressor and Putin must pay a price,” he said.

Speaking to reporters at the Democrats’ retreat-that-is-not-a-retreat in Philadelphia, House Speaker Nancy Pelosi said the US would revoke Russia’s “most favored nation” trade status over its invasion of Ukraine.

Biden is set to speak shortly about ending Russia’s special trade status in coordination with the EU and G7 nations, a move that will allow the countries to raise tariffs on Russian imports. It is the latest step in a series of escalating economic sanctions and actions taken to punish Russia for its invasion of Ukraine.

The US currently only excludes two countries from this designation: Cuba and North Korea, the Guardian’s economic correspondent Richard Partington explains. Removing Russia’s status would would increase its border tax on Russian goods in the US to more than 10 times the current applied rate of about 3% on average.

Long after the sun set over the US capitol on Thursday, US senators, loathe to work on a Friday, gave final approval to a $1.5tn funding bill.

The sweeping omnibus bill belatedly funds the federal government through the fiscal year, ending a cycle of stop-gap measures and shutdown threats. The package, which was passed with bipartisan support in both chambers, includes $13.6bn of military and humanitarian assistance for Ukraine and its European allies. The bill now goes to Biden for his signature.

In a statement, White House Press Secretary Jen Psaki, said the bipartisan support for the bill “proves once more that members of both parties can come together to deliver results for the American people”.

It will reduce costs for families and businesses, support our economic recovery, and advance American leadership abroad. With these resources, we will be able to deliver historic support for the Ukrainian people as they defend their country and democracy, launch a bold new initiative to drive unprecedented progress in curing cancer and other diseases, and provide additional support to our law enforcement so they can protect our communities.

Psaki also urged Congress to re-start negotiations over “the funds urgently needed to prevent severe disruptions to our Covid response”. In a blow to Democrats and the White House, the House dropped a provision providing $15.6bn in funding for bolstering efforts to combat the coronavirus pandemic after lawmakers balked at the proposed offsets for the relief money, which would have resulted in cuts to aid states were relying on.

Everett Kelley, the national president of the American Federation of Government Employees, the largest federal employee union, welcomed the bill’s passage but said it was “no cause to celebrate”.

Because of continued threats of government shutdowns from political obstructionists and uncertainty caused by stopgap continuing resolutions, federal agencies for a year and a half have been forced to operate under the budget priorities of the previous administration,” he said.

“In the future, ideally beginning with the 2023 fiscal year approaching in just six months, Congress must pass agency operating budgets on time so government agencies avoid unnecessary obstacles to delivering for the American people.”

Speaking in Bucharest, Kamala Harris reaffirmed the US’s commitment to Nato’s article five, that an attack on one member is an attack on all. Echoing the president, she said the US was prepared to defend “every inch” of Nato territory, declaring the alliance “bigger and stronger than ever” and “ironclad”.

The message, delivered from a former Soviet satellite state, was intended to calm nerves in eastern Europe and to send a clear message to the Russian president, Vladimir Putin, should he escalate the war beyond Ukraine’s borders.

Turning to Iohannis, Harris said she was moved by his stories of refugees fleeing Ukraine. She thanked Romania for welcoming tens of thousands of refugees with “such compassion and such grace”.

Welcome to our live coverage of the news in Washington and around the country.

Shortly we will hear from Joe Biden, where he is expected to announce that the US will join G7 nations and the European Union in calling for a suspension of normal trade relations with Russia to punish Moscow for what the White House calls its “unprovoked and unjustified war on Ukraine”.

Then he will travel to Philadelphia, where House Democrats are cooped up for a three-day retreat that began inauspiciously, with members angry and upset over the machinations that delayed and almost derailed passage of a $1.5tn omnibus funding bill. The president will deliver remarks at the conference, rallying his party ahead of what is expected to be a bruising midterm for Democrats.

That measure, which includes aid to Ukraine and funds the federal government through September, passed the Senate late Thursday night. It now goes to Biden’s desk for signature.

Meanwhile, vice-president Kamala Harris is concluding her trip to Poland and Romania. Any minute, she will appear with the Romanian president Klaus Iohannis for a press conference.