US Imposes New 12.5% Tariffs on Israeli Imports Amid Forced Labor Claims

Just before the expiration of temporary tariffs imposed by the Trump administration, the US Trade Representative (USTR) announced a broad new wave of tariffs ranging from 10% to 12.5% on imports from over 80 key US trade partners. The official rationale for this move is combating forced labor. The new tariffs, effective just before midnight US time, replace the previous temporary tariffs and mark an escalation in the economic conflict led by former President Donald Trump against various countries, including close allies.

Israel is among the dozens of countries affected and, unlike others that received some relief, it faces the highest tariff rate of 12.5%. Countries such as Canada, Mexico, India, and even neighboring Jordan were granted a reduced rate of 10%, partly due to prior agreements or special measures. Israel also did not receive a tariff cap mechanism granted to other nations like the European Union, Japan, South Korea, Switzerland, and Taiwan. Even products previously exempt under the US-Israel free trade agreement may now be subject to these additional tariffs.

The US government did not claim that specific Israeli products are made with forced labor but argued that Israel lacks a clear legal prohibition on importing goods produced by forced labor, resulting in ineffective enforcement. The US report described Israel's current situation as "unreasonable" and burdensome to American trade. Notably, some countries associated with forced labor allegations, such as Myanmar, Afghanistan, Turkmenistan, Uzbekistan, and Laos, were excluded from the tariff list. The US insists that all listed countries have failed to impose and enforce effective bans on forced labor imports.

US Trade Representative Jamison Greer stated, "The United States has banned imports made with forced labor for nearly 100 years and enforces this strictly. It is time for our trade partners to do the same." To mitigate economic shocks, the US included exemptions for certain products like oil, natural gas, agricultural fertilizers, civil aviation equipment, and generic medicines. Trump separately announced that generic drug imports will continue to enjoy zero tariffs for two more years. Products already subject to special tariffs in steel, aluminum, and vehicles were also exempted.

The new 12.5% tariff on Israeli exports in sectors such as technology, medical equipment, chemicals, food, industrial equipment, and consumer goods could significantly impact their competitiveness in the US market. According to US government data, the US imported approximately $20.6 billion worth of goods from Israel in 2025, with total bilateral trade in goods reaching about $34.4 billion.