Trump Administration Imposes New Tariffs on Over 80 Countries Including Israel

The Trump administration announced a new wave of tariffs on imports from more than 80 U.S. trading partners, including Israel, with rates ranging from 10% to 12.5%. Israel was placed in the highest tariff bracket of 12.5%, affecting various product categories such as technology, chemicals, food, industrial equipment, consumer goods, and medical devices. This move replaces previous temporary tariffs that expired at midnight U.S. time.

According to the U.S. Trade Representative's office, the tariffs aim to combat imports produced using forced labor. Although no specific Israeli products were identified as made with forced labor, the U.S. criticized Israel for lacking explicit legal prohibitions and effective enforcement against such imports. U.S. Trade Representative Jamison Greer emphasized that the U.S. has banned forced labor imports for nearly a century and expects its trade partners to do the same.

Unlike other countries such as Canada, Mexico, India, and Jordan, which received reduced tariffs of 10%, Israel did not receive any tariff relief or inclusion in quota mechanisms granted to the European Union, Japan, South Korea, Switzerland, and Taiwan. The U.S. government also announced exemptions for certain products like oil, natural gas, agricultural fertilizers, civil aviation equipment, and generic medicines. Trump separately confirmed that generic drug imports will continue to enjoy zero tariffs for two more years.

This tariff policy follows legal and political battles over Trump's previous tariff measures, with the administration now invoking Section 301 of the Trade Act of 1974, a tool previously used mainly in the trade war with China. Critics, particularly Democrats, argue that the forced labor rationale is a new legal pretext to continue broad tariff policies. The administration maintains that the tariffs protect American workers, strengthen domestic industry, and reduce the U.S. trade deficit.

For Israel, these tariffs could weigh heavily on exporters to the U.S., especially in highly competitive sectors with narrow profit margins. In 2025, the U.S. imported approximately $20.6 billion worth of goods from Israel, with total bilateral trade in goods reaching about $34.4 billion.