What's behind Trump's tariffs on Israel, and what does it mean practically?  

U.S. President Donald Trump sent shockwaves through the world last night when he signed an executive order imposing significant tariffs on numerous countries. Alongside China, India, and European nations, Israel also finds itself on this challenging list of decrees - with a 17% tariff on goods it exports to the United States.

Dr. Ron Tomer, president of the Manufacturers Association, addressed Trump’s dramatic step in an interview on the program “Rina and Akiva” on Kan Reshet Bet, discussing Israel’s efforts to prevent the tariffs - efforts that bore no fruit - and the incorrect data point Trump provided regarding trade with Israel.

What's Behind Trump’s Moves

It all begins and ends with American industry, which, according to Trump, is steadily weakening. “The Americans see their domestic production, that industry so vital to them, slowly leaving the United States. Why does this happen? Because cheap labor doesn’t exist in the United States,” Dr. Ron Tomer explained. “Laws protecting workers exist in the United States, and that’s a good thing, but they don’t exist in competing countries too, so you see the industry gradually migrating eastward to countries where workers are paid low wages, like China.”

Trump wants to strengthen American industry. He explicitly says, ‘I’m not willing to let factories close in the United States and move east, leaving our people without dignified work,’” Tomer said. “He identified a trend where they, as the world’s major consumers, buy a lot of goods but fail to produce them, for one reason - trade conditions make it unprofitable to manufacture in the West. Not because it’s inefficient, but because it has standards, like worker conditions and environmental concerns, that aren’t always present elsewhere.”

The president of the Manufacturers Association explains: “His handling of American interests is correct. The question is whether he’s using a 5-kilo hammer instead of a regular one. From what I’ve heard from people in his second circle, he’s making moves so that, in the end, people understand the other side, the crisis, and bend to provide solutions for the United States. It’s not that he wants a trade war; he wants to bolster domestic industry.”

Israel was stunned by Trump’s tariff decision, especially since frantic behind-the-scenes efforts were made to prevent radical steps regarding the import of Israeli goods to America. “We were in talks with the Americans. I’m used to criticizing the government, but here, it did all the right things,” Dr. Ron Tomer said.

“We received a document from the United States essentially stating where the gaps were, what bothered them. They asked us to remove some minor taxes on agricultural products, like apples, almonds, potatoes. We did everything required, up to yesterday’s deadline. And then ‘we sat in front of the TV with popcorn’ - and suddenly a 17% hammer fell on us,” he added.

For every shekel you sell to the United States, you’ll pay seven agorot in tariffs. On 14 billion in exports, you’re supposed to pay 2 billion dollars in tariffs. That’s a lot of money,” Tomer explained. “When you have an additional 17% tariff, it means your goods are less affordable to the American consumer, meaning factories in Israel producing goods could be harmed, and we’ll lose that market. Therefore, we must take steps to redirect exports to the United States.”

Was Trump fed lies about Israel?

“He stood to address the nation, and on a slide, Israel appeared on this unflattering list, with a line next to it saying Israel imposes a 33% tariff on American goods,” Dr. Ron Tomer recounted. “There’s no such thing; there’s almost no tariff. And the little that existed was canceled the day before yesterday in a correct government decision. So, this whole event is puzzling.”

“Israel has gone through a tough year and a half and is still going through it. We expect the United States, our true friend that genuinely supports us, even in everything happening today, and sometimes does more than we do, not to abandon Israel,” concluded the president of the Manufacturers Association.

Smotrich Convenes Emergency Meeting at Treasury

Finance Minister Bezalel Smotrich will convene an urgent meeting today (Thursday) with senior Treasury officials to assess the implications of the tariffs imposed overnight by President Trump on Israel.

Without a response in the form of direct compensation to exporters, the damage to the Israeli economy will be considerable, as the U.S. is a leading trade partner for Israel, alongside the European Union.

In addition, Israel’s exports to the U.S. and the European Union account for two-thirds of Israel’s total exports, amounting to approximately $60 billion annually.

Israel Hayom and Walla contributed to this article.