Tel Aviv – Arab Canada News

The economic and political circles in Israel expressed astonishment and great concern following the decision by U.S. President Donald Trump to impose a 17% tariff on Israeli imports, as part of a wide-ranging package of retaliatory tariffs announced under the "reciprocal treatment" policy.

This decision comes despite Israel announcing, just one day prior, the cancellation of all remaining tariffs on U.S. imports, in a step aimed at enhancing bilateral trade relations and avoiding any economic escalation from the American side.

Official Discontent and Economic Concerns:

Ron Tomer, head of the Manufacturers' Association in Israel, stated that the U.S. move is "incomprehensible," adding that the claim of a 33% Israeli tariff on U.S. imports does not reflect the existing commercial reality, describing the decision as "unjustified and poses a risk to the Israeli industry."

Potential Ramifications

Observers fear that this step could lead to:

A decline in Israeli exports to the U.S. market, which is one of Tel Aviv's largest trading partners.

A decrease in the competitiveness of Israeli products in foreign markets.

A drop in foreign investments and an increase in production costs in key sectors.

Efforts to Contain the Crisis

Sources in the Israeli Ministry of Economy stated that the government is in the process of conducting urgent consultations with the U.S. administration to request an exemption or a review of the decision, in light of what it described as "the historic strategic relations" between the two countries.

Background:

This step falls within the package of tariffs announced by Trump as part of a new trade policy targeting a number of America's traditional allies, including Canada, the European Union, Japan, and Mexico, in an attempt to reshape the trade balance in favor of Washington.