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In a move that left Israeli officials and business leaders both stunned and disheartened, US President Donald Trump announced on Wednesday the imposition of a 17% tariff on Israeli goods entering the United States.
The decision by the Trump administration to impose tariffs on Israeli goods is nothing short of a shameful betrayal.
This move came hours after Israel abolished all remaining tariffs on American imports – a gesture of goodwill and economic partnership.
Yet, instead of reciprocating, Trump has chosen to punish an ally. He may have an ‘America First’ policy, but this is no way to treat a friend. The abrupt and unexpected nature of this tariff imposition not only undermines the spirit of cooperation but also raises pressing questions about the future of Israel-US trade relations.
What makes this decision particularly galling is the timing. On Tuesday, Israel officially removed all tariffs on American products. This was intended to deepen the strategic partnership between the two nations and provide Israeli consumers with access to more affordable American goods.
Prime Minister Benjamin Netanyahu emphasized that this move was part of a broader policy to ‘open the market to competition, introduce diversity into the economy, and reduce the cost of living.’ Finance Minister Bezalel Smotrich echoed this sentiment, highlighting the opportunity to ‘reshape the strategic economic relationship’ with the US and promote stronger cooperation.
However, the US response was not as anticipated, and feels, among Israeli officials and business leaders, like a definite slap in the face. Israeli officials were taken aback by this decision, having believed that their elimination of tariffs on US imports would forestall any reciprocal actions. An anonymous official expressed the collective shock, stating, ‘We were sure that the decision to completely cancel tariffs on imports from the US would prevent this move. But it didn’t happen.’
Tariffs’ economic implications
The economic implications of these tariffs are significant. Israel boasts a $17 billion export market to the US, with key sectors including diamonds, machinery, electrical, and medical equipment. The newly imposed tariffs threaten to diminish the competitiveness of these industries in the American market. Michel Nies, a Citi economist, estimates a potential economic loss of up to $3 billion, equating to 0.6% of Israel’s GDP.
This also happened right after an OECD report last week stated that aggregate economic activity in Israel recovered partially during the Israel-Hamas War but remained weak in 2024 and that investments by the end of that year were 15% lower than prewar levels. Exports were precariously low, too.
The report also predicted that GDP growth would be 3.4% in 2025 and 5.5% in 2026. At a time when Israelis are struggling economically, a strong economy is a necessity, and Trump’s tariffs threw a wrench in the works.
Israel’s business community is already feeling the strain and this situation is further complicated by the broader global economic context. Trump’s tariff announcements sent shock waves through international markets. While the administration defends these tariffs as measures to protect American industries and address trade imbalances, the immediate repercussions suggest a trajectory toward increased economic isolationism and potential global trade conflicts.
The imposition of tariffs on Israel feels like a betrayal of trust. The Jewish state has consistently demonstrated its commitment to fostering a strong economic partnership with the United States. The unilateral nature of this tariff imposition not only undermines this commitment but also sets a concerning precedent for how the US engages with its allies – many of whom are becoming more wary of dealing with Trump and the unpredictable nature of his administration.
Historically, Jerusalem’s relationship with Washington has been characterized by mutual support and collaboration, and this bond, of course, goes beyond mere economic interests. The current tariff dispute threatens to potentially erode some of this foundation, introducing an element of unpredictability into a partnership that has long been a cornerstone of both nations’ foreign policies.
Moving forward, it is imperative for both nations to engage in open and productive dialogue to address these trade issues. Israel’s proactive removal of tariffs on US goods was a gesture of goodwill, and Trump’s response was no way to treat a friend.
To the author: I have enjoyed your newsletter awhile now and saved them all actually. But this one is not accurate IMHO. I notice this time you are on the side of Israel when usually it’s not the case so I commend your balanced stance. It’s true that the USA and Israel have had a long partnership in many areas, especially militarily. But as far as calling this a betrayal of trust and friendship is not accurate. Israel is the largest recipient of US financial aid that we give out….to the tune of $325 million dollars a day. This provides Israel with unlimited free health care, education, possibly housing and military weapons, support and protection plus many other benefits that American taxpayers pay for but that we do not receive here. No one in America has free health care, housing or education. And no one in America can afford either now because our taxes are so high and we give so much away to Israel and other countries that many Americans are falling into poverty now. We do have military but that’s it. Israel’s standard of living is probably way higher than the average American and that is thanks to us, the American taxpayer. Most of us are now struggling and can never go to a doctor and barely afford food or gas thanks to the constant flow of cash to Israel. Additionally, Israeli intelligence holds most of our Congress hostage with blackmail so they will constantly fund whatever Israel wants. Most of our Congress also holds Israeli citizenship along with American citizenship and ALWAYS puts Israel ahead of the US. Trump is simply trying to even the playing field for Americans and become more economically fair. I realize the average Israeli citizen is not responsible for these decisions and probably does not know about them. But what Israelis do not understand is how much suffering they have caused, or our government and Israel’s government, have caused Americans and some of the rest of the world with this bleeding flow of cash towards Israel empowering their military. I don’t know if you are Israeli or not and are aware of this or not but that is stark reality of it. America funds everything Israel does and Israel is bullying the world with that money. I believe that is why Trump is trying to tame the beast if you will, not punish or harm Israel. Just make things livable and fair for Americans who frankly cannot take anymore of this financial suffering. I hope this explains it some.
ed note– first off, thank you for the kind words, good to hear that someone is paying attention.
The OpEd is a reprint of what appeared on the Joo-roo-salem post. We do not agree with it and only reposted it in order to show the reaction on the part of the Jews towards what POTUS DJT has done.
We DO NOT support Israel in any fashion whatsoever. It is a cancer that needs to be excised from this planet of the Gentiles and sent back to the deepest pits of Hell from whence it came.
It’s just business. What Israel did to Gaza will take more repentance and atonement than Israel will ever be able to afford, so they might as well try to swim out through the Strait of Gibraltar and go until they hit dry land near Puerto Rico.
Who wants any of that nasty jew tripe anyway?