Trump's 17% tariff blow hits Israel despite lifted duties
The Israeli government, just one day before Donald Trump's decision on Wednesday, canceled all tariffs on imports from the United States. Despite this move, the U.S. President imposed 17% retaliatory tariffs. "The Israeli industry is deeply worried by President Trump’s decision to impose new tariffs on Israel," stated the president of the Israeli Manufacturers Association.
What do you need to know?
- Israel lifted tariffs on U.S. products the day before Donald Trump's decision, hoping to avoid new tariffs.
- The United States imposed 17% tariffs on products from Israel, surprising and worrying Israeli producers.
- The U.S. decision is related to allegations of intellectual property theft by Israel, suggested a U.S. administration official.
"The removal of tariffs on American goods is another step... to open the market to competition, to diversify the economy, and to lower the cost of living," said Israeli Prime Minister Benjamin Netanyahu on Tuesday.
"In addition to the economic benefits for the economy and the citizens of Israel, the current move will enable us to further strengthen the alliance and ties between Israel and the United States," added Netanyahu, as reported by Reuters.
Despite these efforts, during Wednesday's announcement, Israel found itself on the list of countries affected by the U.S. tariffs. Tariffs on products from Israel are set to be 17%.
As reported by a journalist from "The Jerusalem Post," Israel is in complete shock after the Trump administration's decision. "We are in shock. We were sure that the decision to completely cancel tariffs on imports from the US would prevent this move. But it didn't happen," cited a source, Amichai Stein.
The Ynet portal quotes Ron Tomer, president of the Israeli Manufacturers Association:
"The Israeli industry is deeply worried by President Trump’s decision to impose new tariffs on Israel," said Tomer. "We are trying to understand the logic behind this move. The claim that Israel imposes 33% tariffs on American goods is unclear, and the 17% response seems unjustified," he added, as reported by Ynet.
The background of the U.S. decision was conveyed by the American correspondent of the Saudi station Asharq News. "Today in a call with reporters on the tariffs, a US administration official said: The problem more broadly with Israel is the intellectual property theft. Israel steals a lot of intellectual property from, for example, the pharmaceutical manufacturers. So, this can't go on," reported Hida Nasr.
