Israel's industry body warns of U.S. tariffs' impact on trade

JERUSALEM, April 3 (Xinhua) -- The Manufacturers Association of Israel (MAI) on Thursday voiced concern over U.S. President Donald Trump's decision to impose a 17 percent tariff on Israeli goods, calling it a "worrying step for Israeli exporters."

Trump announced the levies Wednesday as part of his "reciprocal tariffs" policy, though Israel had lifted all tariffs on U.S. imports a day earlier.

Expressing surprise in a statement, the industry body said that 99 percent of U.S. goods entering Israel were already tariff-free before the policy shift. It warned that the new policy could harm Israel's economic stability, deter foreign investment, and weaken Israeli companies' competitiveness in the U.S. market.

"This worrying step could harm jobs in Israel and reduce activity in the American market," it added.

The association called the decision a setback in trade and investment relations and voiced hope that the move would be short-lived. It pledged to work with Israel's finance and economy ministries to reverse the policy while exploring alternative strategies, including seeking new markets and engaging U.S. decision-makers.

The two countries signed a free trade agreement in 1985, which is Washington's first such deal. The United States remains one of Israel's top trade partners, with bilateral goods trade reaching an estimated 37 billion U.S. dollars in 2024, according to the U.S. Trade Representative.