Israel to formulate 'necessary steps' in response to US tariffs, says Smotrich

Far-right Israeli Finance Minister Bezalel Smotrich said on Thursday that he was convening ministry officials to formulate a course of action to protect Israel’s economy in the wake of US President Donald Trump’s decision to impose import tariffs, Reuters has reported. As part of a sweeping new tariff policy, Israeli exports to the United States face a 17 per cent tariff.

Smotrich said that he would speak with economic leaders and then discuss with ministry officials how to “analyse opportunities and risks and formulate courses of action, both in relation to President Trump and his team and regarding the necessary steps to strengthen Israel’s industry.”

Trump’s move came a day after Israel cancelled its remaining tariffs on US imports to the occupation state.

Israel and the US signed a free trade agreement 40 years ago and around 98 per cent of goods from the US are now tax-free. The finance ministry noted that tariff collection from US imports — mainly in the agricultural sector — stands at about 42 million shekels ($11.3m) a year.

The president of Israel’s Manufacturers’ Association, Ron Tomer, said that the tariffs could harm Israel’s economic stability, deter foreign investments, weaken the competitiveness of Israeli companies in the US market and set back trade and investment relations between the countries. “We hope and believe that the decision will be short-lived, and we will work with the Ministries of Finance and Economy to reverse it,” he added.

The association said that it would work on formulating strategies to cope with the new situation and seek new export markets. It also called for continued intensive negotiations between Israel and the US to bring about a change in the decision or at least reduce its scope.

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