Israel did not escalate the comprehensive decree of US President Donald Trump to impose customs duties on international imports, and it imposed on it on “Tahrir’s Day” by customs duties by 17% on the products exported to America.
This comes despite the Israeli government’s rapid move a day ago to raise all the remaining customs duties on American imports, in a recent attempt to anticipate this step.
Israel is shocked by Trump’s fees
Israel tried to evade the “shocking” customs duties – according to the expression of the British Guardian – of 17% on Israeli imports, by moving in anticipation last Tuesday – a day before the announcement of the fees – to drop all the remaining fees on 2% of the American commodities that are still covered.
Officials said that Israel canceled the remaining customs duties on imports from the United States, a day before the Trump administration imposed mutual fees on its global trading partners, according to Reuters.
But Trump went ahead with the imposition of drawings, claiming that the United States is suffering from a major trade deficit with its main ally in the Middle East, and the largest beneficiary of US military aid, according to the British Guardian.
“Trump has launched a global trade war, and Israel is now part of the tremendous global uncertainty,” Leo Ledman, the chief economic advisor at Hapoelim Bank, one of the country’s largest banks and a former official in the Bank of Israel, told the Times of Israel.
Ron Tomer, president of the Association of Manufacturers in Israel, said that the imposition of customs duties “a” worrying step for Israeli manufacturers and exporters, “adding that economic cooperation between Israel and the United States” is very important, especially in the security sector, “according to the previous source.
The Israel Industry Association is working with government ministries to cancel the new definitions, but if it remains in effect, the association says it will harm “commercial and investment relations that have long been between the two countries” and weaken the competitiveness of Israeli companies in the American market, and also harm jobs.
Likewise, the head of the Advanced Technology Industries Company in Israel, Karen Mayer Robinstein, described the customs duties imposed by Trump as a “dramatic step with large -scale impacts on the global economy and the Israeli economy in particular,” according to the previous source.
The volume of Israeli -American trade
The United States is the closest ally of Israel and its largest commercial partner in the region. The two countries signed a free trade agreement 40 years ago, and about 98% of American goods are tax exempted in Israel.
The free trade agreement between the United States and Israel entered into force in 1985, the first free trade agreement for the United States.
It is still a basis for the expansion of trade and investment between the United States and Israel by reducing barriers and enhancing organizational transparency according to the USA -USTR commercial representative office.
- The total US commodity trade with Israel was about $ 37 billion in 2024.
- US commodity exports to Israel in 2024 amounted to $ 14.8 billion, an increase of 5.8% over 2023.
- While the total imports of US commodities from Israel amounted to $ 22.2 billion in 2024, an increase of 6.7% over 2023.
- The US commodity trade deficit with Israel was $ 7.4 billion in 2024, an increase of 8.6% for 2023, according to the USA’s commercial representative office.
The size of the Israeli losses and the most important sectors
Prior to the meeting of Israeli Prime Minister Benjamin Netanyahu today, Monday, in Washington with US President Donald Trump, the Association of Industrialists in Israel provided him with an analysis warning of the possible “huge blow” that the economy may be exposed to as a result of the new customs duties imposed by the US President, according to another report to the Times of Israel.
According to the document, Israeli exports to the United States will lose 2.3 billion dollars due to customs duties, and it is likely to lose between 18,000 to 26,000 Israelis their jobs.
The association warned that if additional customs duties are imposed on pharmaceutical and chips industries, which have been excluded so far from the comprehensive Trump decree, the damage to Israeli exports may reach $ 3 billion.
Expectations indicate that the areas that are expected to be severely affected are high -tech, including biotechnology, plastic, minerals, chemicals and fuel, robots, and electronic components.
An official at the Israeli Ministry of Finance told Reuters that the customs duties declared by 17% on some Israeli goods are less than those imposed on many other goods in many countries.
The official pointed out that although the issue is not clear yet, it is likely that customs duties do not include services, and that about half of the Israeli exports are high -tech services. These services make up 20% of Israel’s gross domestic product.
Israel is seeking to negotiate the cancellation of customs duties
The Israeli Prime Minister’s office said that Netanyahu will discuss the American customs duties imposed by US President Donald Trump from other issues during his current visit to Washington.
The chief economist of the Israeli Finance Ministry, Shmuel Abramzon, said that Israel will negotiate with the US administration regarding the abolition or reduction of American customs duties announced on Israeli goods, according to the Times of Israel.
“We knew this would happen, but we are surprised by the scope of customs tariffs, and we are still aware of its repercussions,” Abramzon said, speaking at a conference at Rayekhlan University in Herzlia.
He added: “We have a good communication channel with the American administration, and I believe that through dialogue and negotiations, we will succeed in reducing the intensity of the decree.”
Israel is seeking a special treatment from the Trump administration as the largest Washington allies in the Middle East.
