US Imposes New Tariffs on Over 80 Trade Partners Including Israel Over Forced Labor Concerns

Just before the expiration of previous tariffs, the US Trade Representative (USTR) announced a broad new wave of tariffs ranging from 10% to 12.5% on imports from more than 80 key US trade partners. The official rationale cited is combating forced labor. The new tariffs, effective from midnight US time, replace temporary tariffs imposed earlier by President Trump and mark an escalation in his global economic conflict, affecting even close allies. Israel was unexpectedly included among the countries facing the highest tariff rate of 12.5%, unlike nations such as Canada, Mexico, India, and Jordan, which received a reduced 10% rate or special exemptions.

The US government clarified that it does not claim Israeli products are made with forced labor, but criticized Israel for lacking explicit legal prohibitions and effective enforcement against importing goods produced by forced labor. The report described this situation as "unreasonable" and burdensome to US trade. Notably, countries often associated with forced labor allegations, such as Myanmar and Afghanistan, were absent from the list. US Trade Representative Jamison Greer emphasized that the US has banned imports made with forced labor for nearly a century and expects its trade partners to enforce similar measures.

Certain products were exempted to avoid severe disruptions to the US economy, including oil, natural gas, agricultural fertilizers, civil aviation equipment, and generic medicines. Trump separately announced that generic drug imports would remain tariff-free for two years. However, the new tariffs could significantly impact Israeli exports in sectors like technology, medical devices, chemicals, food, industrial equipment, and consumer goods. In 2025, US imports from Israel totaled approximately $20.6 billion, with bilateral trade reaching about $34.4 billion.

This move follows a series of legal and political challenges to Trump's previous tariff strategies. After the US Supreme Court struck down emergency trade laws used to impose broad tariffs and ordered refunds of about $160 billion, Trump invoked Section 122 of the Trade Act of 1974 for temporary tariffs, which also expired. Now, he is using Section 301 of the same act, previously applied mainly against China, to impose widespread tariffs on 60 economies simultaneously, including the European Union as a single entity.

The tariffs are expected to raise costs for American importers and consumers rather than foreign exporters. The policy reflects Washington's new economic approach aimed at reducing trade deficits and protecting domestic industry, with no exceptions for close allies like Israel. Critics, including Democratic Senator Ron Wyden, have denounced the forced labor justification as a legal pretext to reinstate unlawful tariffs. Nonetheless, USTR Greer insisted that while the legal tools have changed, the trade strategy remains focused on supporting US industrial revitalization, protecting workers, raising wages, and reducing the trade deficit.