U.S. President Donald Trump has announced sweeping tariffs on multiple countries, including key allies, in a move that risks igniting a global trade war. Among those affected is Israel, now facing a 17% duty on exports to the U.S., despite last-minute efforts to avoid the tariffs.
Israeli Finance Minister Bezalel Smotrich had preemptively eliminated all remaining tariffs on American imports, hoping for leniency. However, the move did not deter Trump, who unveiled the measures in a speech at the White House, calling it “Liberation Day” and declaring the U.S. had been economically exploited for decades.
The new tariffs could impact a wide range of Israeli exports, including technology, medical supplies, and consumer goods, potentially raising prices on kosher food and Judaica. The Manufacturers Association of Israel expressed concern over the economic fallout, warning of job losses, reduced American market activity, and weakened investor confidence.
Trump’s administration justified the tariffs, citing trade imbalances and claims of intellectual property theft, particularly in pharmaceuticals. Critics, including economists, argue that the tariffs will harm the global economy and lead to higher costs for American consumers.
While Smotrich’s decision to lift Israeli tariffs was coordinated with Prime Minister Benjamin Netanyahu and Economy Minister Nir Barkat, it remains uncertain whether Trump will reconsider his stance. The Israeli government is now working on strategies to mitigate the impact, including seeking alternative markets and negotiating with Washington.
With Israel exporting over $22 billion worth of goods to the U.S. in 2024, the economic ramifications could be significant. As trade tensions escalate, observers worry about broader consequences for U.S.-Israel relations and global markets.
