Farmers demand relief plan as US pressures Israel to drop tariffs after Iran war – report

After joining Israel’s offensive against Iran earlier this week, US President Donald Trump’s administration has begun pressuring Israel to announce within the coming days the removal of tariffs on American agricultural goods, leading some Israeli agricultural sectors to demand compensation for damages they expect to suffer as a result, Walla reports.

The pressure comes as the US seeks to present Israel as the first country to comply with its global tariff demands, according to Walla.

In early April, Netanyahu hoped to avoid Trump’s newly declared policy to impose levies on global imports, but the president nonetheless hit Israel with a 17% tariff, despite Finance Minister Bezalel Smotrich removing all customs duties on US imports.

Netanyahu appointed Prof. Avi Simhon, chairman of the National Economic Council in the Prime Minister’s Office, to coordinate the plan across government ministries.

Asked by Walla whether the tariff cancellation would be announced today, Simhon replied that the issue is still under government discussion and isn’t likely to be announced soon.

Agricultural sectors likely to compete with American imports — such as apples, pears, almonds, industrial-use potatoes and wine grapes — are demanding compensation for damages they expect to suffer, the report continues.

Yesterday, members of the Knesset’s agricultural lobby, led by former agriculture minister MK Alon Schuster, sent an urgent letter to the prime minister, finance minister and economy minister, warning that canceling tariffs poses “a serious threat to the survival of several agricultural sectors.”

The lobby is demanding the establishment of a comprehensive, long-term support network for local agriculture. The Agriculture Ministry and farmers’ organizations have already formulated a plan, but the Finance Ministry is failing to advance its implementation, the report says.

According to Walla, despite the Agriculture and Economy ministries’ general support for compensating affected sectors, the Finance Ministry prefers to avoid reaching a compensation agreement, hoping that American pressure will lead to a swift announcement, leaving farmers with weakened bargaining power and allowing the state to reduce the scope of compensation.