Prime Minister Binyamin Netanyahu and Finance Minister Betzalel Smotrich will try to negotiate with the Trump administration in the coming days to reduce the 17% tariff on Israeli exports to the US, Israel’s largest trading partner.
The US decision shocked Israeli officials and caused the Israeli stock market to dip, with the Tel Aviv 35 index dropping 0.16%, the TA-125 falling 0.20% and the Tel Aviv Banks index decreasing by 0.1%.
Trump announced reciprocal tariffs on 60 countries, including Israel, of half the rates they impose on US goods. Israeli financial officials are very concerned about the decision’s impact on Israel’s economy.
Ynet quoted Dr. Ron Tomer, president of the Manufacturers Association of Israel, as saying he is seriously concerned about the decision. “The Israeli industry is deeply worried by President Trump’s decision to impose new tariffs on Israel,” he said. “We’re trying to understand the rationale behind this move. The claim that Israel imposes 33% tariffs on American goods is unclear, and the 17% response seems unjustified.”
Tomer said that the tariff could harm Israeli exporters, affect jobs, and decrease business activity in the US market. “The decision threatens Israel’s economic stability, could deter foreign investment and weaken the competitiveness of Israeli firms in the U.S.,” he added.
Israel exported approximately $34 billion in goods and services to the US in 2024. According to officials, the U.S. trade deficit with Israel — $7 billion annually — was a major factor in determining the 17% tariff. Israel imports $13 billion of US goods while exporting $20 billion in goods to the U.S., creating a $7 billion deficit.
Israel was not informed of the 17% tariff beforehand. “We were aware of the tariff decision like everyone else, but the specific rates were not known in advance,” the Finance Ministry said in a statement on Thursday.
(YWN Israel Desk – Jerusalem)
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One Response
Israel has no difficulty in charging its own citizens 18% sales tax even on food items why do they feel America should lower its tariff on their Israeli imports!
If it’s good for the goose it’s good for the gander!