Israeli Leaders Urge U.S. to Reconsider Unexpected Tariff Hike

Caught off guard by a 17% U.S. tariff on Israeli exports, leaders like Netanyahu and Smotrich are advocating for its reduction. This tariff, rooted in a trade deficit, ignites economic concerns. Meanwhile, Israel counteracts with tariff eliminations on U.S. imports, pending legislative approval.

Israeli officials are in urgent talks with the U.S. administration following an unexpected imposition of a 17% tariff on exports from Israel. Prime Minister Benjamin Netanyahu, alongside Finance Minister Bezalel Smotrich, is pushing for a reduction to 10%, aligning it with the minimum tariffs other nations face.

This decision shocked Jerusalem's leadership, as key offices including the Prime Minister's and the Ministry of Finance were not forewarned. Smotrich held an emergency session with the Manufacturers Association of Israel's president to gauge the economic fallout. The tariffs are exclusive to goods, factoring Israel's USD 7 billion annual trade deficit with the U.S.

In response, Smotrich issued an order to abolish the remaining Israeli tariffs on U.S. imports worth USD 11.3 million, primarily for agriculture, awaiting Knesset Finance Committee's nod. Trump's administration cites these moves aim to revive U.S. manufacturing, yet economists caution of potential global recession risks and soaring costs.

(With inputs from agencies.)