Israel Moves to Ban Forced Labor Imports to Counter New US Tariffs Under Trump

The Israeli government is urgently working to prevent the imposition of new US tariffs introduced by President Donald Trump on imports from Israel. According to reports, Professor Avi Simhon, the economic advisor to the Prime Minister, is leading negotiations with the US administration while drafting a government decision to ban the import of products made with forced labor. This proposal is expected to be presented at the upcoming cabinet meeting on Sunday.

The move comes after a significant shift in the Trump administration's legal strategy. Following a US Supreme Court ruling that limited the use of emergency powers for global tariffs, the administration has shifted to trade investigations targeting countries it claims do not adequately prevent the import and sale of goods produced by forced labor. Trump has imposed tariffs ranging from 10% to 12.5% on 60 trade partners, including Israel, citing a campaign against forced labor. These tariffs replace earlier temporary duties invalidated by the Supreme Court in February.

Israel is currently subject to a 10% tariff on exports to the US but faces an increase to 12.5% unless it convinces the US government that it meets the new requirements or obtains an exemption. Sources indicate that Simhon has already begun formulating the decision to demonstrate Israel's commitment to banning forced labor imports, aligning with the US's new standards. The government aims to approve the measure swiftly to strengthen its diplomatic and legal efforts to reduce or avoid tariff hikes.

If successful, Israel will argue that it complies with Washington's new forced labor trade standards, bolstering its case for tariff relief or removal.