The US, European Union and other allies also plan to revoke Russia’s status as an equal trade partner, paving the way for further economic punishment.
The moves add to sanctions that have isolated Russia economically since the invasion.
Its currency has collapsed, while global firms rush to exit the country.
Russian President Vladimir Putin has likened Western sanctions on banks and oligarchs to a declaration of war. Moscow has also threatened to nationalise production plants or factories where work has been suspended.
Western allies announced further economic retaliation on Friday.
The European Union said it would ban imports of key Russian iron and steel products and bar new energy investments in the country, while the UK put sanctions on hundreds of Russian politicians.
The US, EU and UK also said they would cut off shipments of luxury goods to Russia.
Mr Biden said the latest steps will be “another crushing blow to the Russian economy”.
Revoking ‘most favoured nation’ status
Under international rules, designating a country a “most favoured nation” provides reciprocal trade privileges such as lower tariffs, taxes imposed at the border.
Stripping Russia of that status clears the way for higher tariffs on key products it sells such as mineral fuels, fertilisers and metals.
Mr Biden said he was coordinating the plans with the European Union and other advanced economies, including Canada and Japan, each of which will take similar steps.
In the US, Congress, which must act for the move to go into effect, has already declared itself in favour of the move.