New executive order targets dozens of countries; Israel warns of job losses, but hopes for revised deal
Washington: In a significant move under the Trump administration’s aggressive trade overhaul, the White House announced a 15% tariff on all Israeli goods entering the United States. The new policy, part of an executive order signed by US President Donald Trump, will take effect on August 7, 2025, and impacts dozens of countries with similar or higher trade penalties.
“The tariffs are necessary to reclaim money and respect that other countries have taken from the United States,” Trump said, defending his decision.
Israel attempts to downplay the blow
The Israeli Finance Ministry, in a measured response, tried to soften the announcement’s impact. It noted that the 15% rate is the lowest among countries with a trade deficit with the US, citing “ongoing dialogue with the administration” to reach a revised trade agreement.
Earlier this year, the Trump administration had threatened a 17% tariff on Israeli goods but paused implementation for 90 days to allow for negotiations. That freeze has now expired.
The Manufacturers Association of Israel had warned that a 17% tariff could cost up to 26,000 Israeli jobs, especially in export-heavy sectors like tech and manufacturing.
Trade data highlights strong US-Israel economic ties
According to Kan News:
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In 2024, Israeli exports to the US totalled NIS 52 billion (≈ $14 billion).
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US imports to Israel stood at NIS 32 billion (≈ $8.6 billion).
The new tariff threatens to upset this balance, possibly weakening one of Israel’s most critical trade relationships.
Global ripple: Other countries hit harder
The executive order also slaps:
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41% tariffs on Syria
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30% on South Africa
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35% on Canadian goods not covered by the US-Mexico-Canada Agreement (USMCA), up from 25%.
The order reflects Trump’s broader “America First” trade doctrine, which seeks to reorient global commerce toward domestic industry interests—even at the risk of alienating allies.
Economic backlash feared
Mainstream economists have strongly criticized the move, warning that the tariffs could disrupt global trade and ultimately lead to higher prices for American consumers.
“This policy is more likely to hurt American businesses and consumers than foreign competitors,” said an unnamed trade analyst based in Washington.
As August 7 approaches, Israeli businesses and government officials are racing to renegotiate terms or mitigate the impact, while critics fear this may be a new phase in US economic isolationism.
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