Trump’s tariff push hits strained Israeli exporters with higher duty on goods to US

The Trump administration imposed new tariffs of 10% and 12.5% on goods from over 60 trading partners, citing insufficient action against forced labor. Israel was levied a 12.5% duty, higher than the 10% applied to the EU, India, Mexico, and the UK. Israeli officials expressed disappointment, warning the tariffs will hurt exporters already strained by shekel appreciation and war. The Manufacturers Association warned of potential relocations and shutdowns.

The Trump administration on Friday imposed new tariffs of 10% and 12.5% on goods from more than 60 trading partners, premised on the claim that foreign countries are not doing enough to clamp down on goods made with forced labor passing through their supply chains. Israel was levied a 12.5% duty on local goods exports, together with a list of countries including Australia, Brazil, China and Japan. Other trading partners, including the European Union, India, Mexico and the United Kingdom, are subject to a 10% tariff after committing to adopt a forced-labor import prohibition. Israeli officials expressed disappointment, noting that Israel took US concerns seriously and showed willingness to accommodate them. The higher tariff is a blow to Israeli export-oriented companies, which since 1985 have enjoyed duty-free access to the US market. The new duty will make Israeli goods more expensive and less competitive. The Manufacturers Association warned that some exporters may be forced to relocate or shut down. The tariffs come as Israeli exporters are already under strain from a sharp 20% appreciation of the shekel versus the dollar over the past year and operating in a war situation. The US is Israel's largest single trading partner, with Israeli goods exports totaling $20.6 billion in 2025, down 7.4% from 2024. About 30% of Israeli exports of goods will be affected by the new tariffs.