Trump tariffs kick in worldwide, including 15% levied on Israeli goods

Higher US tariffs have come into effect for dozens of economies, including Israel, which is slapped with a 15 percent duty on most goods entering the US.

Talks between Israel and the US had taken place in recent months in a bid to reduce the rate to a baseline of 10%, but failed to bear fruit. Nonetheless, the 15% rate is below the 17% initially announced before Trump put a 90-day freeze on the levies in a bid to negotiate trade deals.

The impact of the imposed US tariffs on Israel’s tech exports, which account for 53% of the country’s total exports to the US, is expected to be limited, as US tariffs will not apply to the export of services, which make up about 70% of Israel’s tech exports. But the remaining 30% — physical goods, mainly machinery, industrial equipment, and similar goods — will be affected by the tariffs.

The US imported $22.2 billion of goods and services from Israel in 2024, $7.4 billion more than it exported to the country.

It is estimated that Israeli exports will take an annual hit of $2 billion to $4 billion due to the new 15% tariffs, and, should they include pharmaceutical and semiconductor components, 20,000 to 33,000 Israelis could lose their jobs, according to Ron Tomer, president of the Israel Manufacturers Association.

Trump says he is planning a 100% tariff on semiconductors produced by companies located outside the US.