She added, \u201cWe are in ongoing negotiations and very much hope that our biggest ally and friend will not overlook Israeli concerns, and correct the decision at least to the level of other countries [with a lower tariff].\u201d<\/p>\n
\t But negotiation efforts between Israeli officials and the US administration have so far failed. Inevitably, local exporters of goods to the US, and the economy in general, will be hurt by the new trade tariff regime, ad some will be forced to relocate and produce elsewhere or shut down altogether, the Israel Manufacturers\u2019 Association has warned<\/a>. Revenues from corporate taxes could also fall.<\/p>\n The higher tariff is a blow to Israeli export-oriented companies, which since 1985 have enjoyed duty-free access to the US market thanks to a free trade agreement between the two nations. The new duty will make Israeli goods entering the US economy more expensive and less competitive versus other countries, while revenues and profits generated by local exporters will decrease since their expenses remain unchanged.<\/p>\n \u201cIt\u2019s bad for business and exports and Israel\u2019s good trade relations with the US,\u201d said Netanel Haiman, head of the Economics Division at the Manufacturers Association of Israel. \u201cTrump\u2019s new tariffs come at a critical time when Israeli exporters\u2019 trade and revenues are already under strain from the sharp 20% appreciation of the shekel versus the dollar over the past year, while operating in a war situation on multiple fronts over the past two and half years has been affecting manufacturing.\u201d<\/p>\n The US is Israel\u2019s closest ally and largest single trading partner. The volume of Israeli exports of goods to the US totaled $20.6 billion in 2025, down 7.4 percent, or $1.7 billion from 2024, according to US government data. Imports of goods from the US to Israel amounted to $13.8 billion, down 6.4%, or $951.1 million from 2024.<\/p>\n About 30% of Israeli exports of goods will be affected by the new tariffs.<\/p>\n \u201cOur industry is bleeding,\u201d said Alon Perel. \u201cMany companies have been affected already for the past year.<\/p>\n \u201cSome are still waiting to see what\u2019s going to happen and others are considering moving away from Israel and not to the US necessarily, because if Mexico and Canada and the EU and Britain have gotten better market access, then Israeli companies could be considering these destinations,\u201d she cautioned.<\/p>\n Overall, the new tariff regime covers 99.4% of US imports, but includes numerous product exemptions, such as oil and gas, fertilizer, and certain food items. The move is part of Trump\u2019s protectionist trade policy advanced over more than a year, intended to boost US manufacturing and create jobs.<\/p>\n \t Haiman criticized the Israeli government, saying it acted slowly although the US intention to levy new tariffs had been known for months.<\/p>\n \u201cThe government failed once again to deal with US trade relations,\u201d said Haiman. \u201cOf course, a 10% tariff would be preferable to 12.5%, but if the government would have acted faster and more decisively, then we could maybe even have gotten closer to zero tariffs.\u201d<\/p>\n On Sunday, the cabinet approved Prime Minister Benjamin Netanyahu\u2019s proposal to ban the import into Israel of goods produced, entirely or in part, through forced labor, to align with international trade standards. Regulations and an enforcement mechanism are expected to be finalized in the coming months.<\/p>\n \u201cIsrael passed a government resolution on forced labor in May and that was a signal to the US that we are going to act on their concern,\u201d said Alon Perel. \u201cTo pass the legislation is a very long process and it was obvious that the Knesset would be dispersed ahead of national elections coming in October.\u201d<\/p>\n Alon Perel pointed out that the Knesset, on its last day before dispersal on July 17, passed a \u201cWhat is good for the US \u2013 is good for Israel\u201d bill in its second and third readings. The reform, spearheaded by Economy Minister Nir Barkat, will permit manufacturing, sale and import of goods that comply with the requirements of American regulation to standardize and facilitate trade with the US, and is expected to greatly benefit US manufacturers exporting to Israel, Alon Perel said.<\/p>\n
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\n\t\tYifat Alon Perel, deputy trade commissioner at Israel\u2019s Economy and Industry Ministry. (Courtesy)<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/iran\/wp-content\/uploads\/2026\/07\/WhatsApp-Image-2020-09-07-at-15.15.35-1-300x480.jpeg\")
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\n\t\tNetanel Haiman, head of the economics division at the Manufacturers Association of Israel (Courtesy)<\/p>\n
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