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Trump Hits Israel With 17 Percent Tariffs; Israeli Officials Express Shock, Frustration
US President Donald Trump waves as he walks before departing for Florida from the South Lawn at the White House in Washington, DC, US, March 28, 2025. Photo: REUTERS/Evelyn Hockstein
The United States will impose 17 percent tariffs on goods imported from Israel under a major new trade initiative that US President Donald Trump announced on Wednesday, sending shockwaves throughout the Jewish state as Israeli officials expressed frustration with the decision.
The duty on Israel is part of Trump’s newly unveiled sweeping set of tariffs in which the US will impose a 10 percent baseline tariff on all imports to the US and higher duties on some countries with which it has larger trade deficits. Washington decided on the 17-percent figure for Israel because it is half of the 33 percent tariffs that the White House says the Jewish state has put in place for some American products.
Israel sends over $22 billion worth of commodities to the US annually, including diamonds, medications, and electronic devices. Israeli officials reportedly expect the country’s robust high-tech sector to be spared because they believe the US tariffs will not be applied to services.
However, if the tariffs do apply to the high-tech sector, the implications could be profound.
“If the tariffs apply to software products as well, particularly Software as a Service (SaaS) – the main area of activity for many Israeli high-tech companies – this move could fundamentally alter how Israeli companies approach the American market and even discourage potential investors and customers,” Karin Mayer Rubinstein, CEO of Israel Advanced Technology Industries, told The Jerusalem Post.
“We are all going to feel this in our pockets,” Ron Tomer, president of the Manufacturers Association of Israel, told Israeli radio on Thursday, claiming that the American tariffs against the Jewish state are tantamount to “abandonment by a friend.”
Trump’s announcement came one day after Israel removed all tariffs on US goods. Israeli officials had hoped that dropping the tariffs would prevent the White House from placing its own tariffs on the Jewish state.
“The removal of tariffs on American goods is another step … to open the market to competition, to diversify the economy, and to lower the cost of living,” Israeli Prime Minister Benjamin Netanyahu said in a joint statement with Economy Minister Nir Barkat and Finance Minister Bezalel Smotrich.
Jerusalem will reportedly launch efforts to convince the Trump administration to reverse its decision.
Smotrich said that the finance ministry is still “analyzing” the expected and potential impact of the impending tariffs on the country and will be starting “discussions” with key figures across various Israeli industries.
Israel and the United States — the Jewish state’s largest trading partner — completed $34 billion in bilateral trade in 2024. Of that, about $22 billion came from exports from Israel to the US.
Trump announced his so-called “Liberation Day” on Wednesday, in which his administration unveiled an expansive slate of tariffs on international trade partners, citing a “lack of reciprocity in our bilateral trade relationships” that is “indicated by large and persistent annual US goods trade deficits.”
Democratic Majority for Israel (DMFI), a US group advocating pro-Israel policies within the Democratic Party, slammed the Trump administration’s decision to levy tariffs against the Jewish state, arguing that the White House has fractured America’s relationship with arguably its closest ally.
“President Trump made a grave error in slapping a higher tariff on Israel than on Turkey and even Iran, especially given the fact that Israel eliminated all tariffs on American goods,” DMFI President and CEO Mark Mellman said in a statement.
Mellman argued that White House inadvertently helped the boycott, divestment, and sanctions (BDS) movement (BDS) against Israel advance some of its major goals.
“The president’s action helps the BDS movement achieve one of its key goals — damaging the US-Israeli economic relationship,” he said. “This action undermines the longstanding and robust economic relationship between the United States and Israel, a relationship that has been built on trust, mutual benefit, and a commitment to free and fair trade.”
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Iranian Media Claims Obtaining ‘Sensitive’ Israeli Intelligence Materials
FILE PHOTO: The atomic symbol and the Iranian flag are seen in this illustration, July 21, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
i24 News – Iranian and Iran-affiliated media claimed on Saturday that the Islamic Republic had obtained a trove of “strategic and sensitive” Israeli intelligence materials related to Israel’s nuclear facilities and defense plans.
“Iran’s intelligence apparatus has obtained a vast quantity of strategic and sensitive information and documents belonging to the Zionist regime,” Iran’s state broadcaster said, referring to Israel in the manner accepted in those Muslim or Arab states that don’t recognize its legitimacy. The statement was also relayed by the Lebanese site Al-Mayadeen, affiliated with the Iran-backed jihadists of Hezbollah.
The reports did not include any details on the documents or how Iran had obtained them.
The intelligence reportedly included “thousands of documents related to that regime’s nuclear plans and facilities,” it added.
According to the reports, “the data haul was extracted during a covert operation and included a vast volume of materials including documents, images, and videos.”
The report comes amid high tensions over Iran’s nuclear program, over which it is in talks with the US administration of President Donald Trump.
Iranian-Israeli tensions reached an all-time high since the October 7 massacre and the subsequent Gaza war, including Iranian rocket fire on Israel and Israeli aerial raids in Iran that devastated much of the regime’s air defenses.
Israel, which regards the prospect of the antisemitic mullah regime obtaining a nuclear weapon as an existential threat, has indicated it could resort to a military strike against Iran’s installations should talks fail to curb uranium enrichment.
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Israel Retrieves Body of Thai Hostage from Gaza
Israeli Defense Minister Israel Katz looks on, amid the ongoing conflict in Gaza between Israel and Hamas, in Jerusalem, Nov. 7, 2024. Photo: REUTERS/Ronen Zvulun
The Israeli military has retrieved the body of a Thai hostage who had been held in Gaza since Hamas’ October 7, 2023 attack, Defense Minister Israel Katz said on Saturday.
Nattapong Pinta’s body was held by a Palestinian terrorist group called the Mujahedeen Brigades, and was recovered from the area of Rafah in southern Gaza, Katz said. His family in Thailand has been notified.
Pinta, an agricultural worker, was abducted from Kibbutz Nir Oz, a small Israeli community near the Gaza border where a quarter of the population was killed or taken hostage during the Hamas attack that triggered the devastating war in Gaza.
Israel’s military said Pinta had been abducted alive and killed by his captors, who had also killed and taken to Gaza the bodies of two more Israeli-American hostages that were retrieved earlier this week.
There was no immediate comment from the Mujahedeen Brigades, who have previously denied killing their captives, or from Hamas. The Israeli military said the Brigades were still holding the body of another foreign national. Only 20 of the 55 remaining hostages are believed to still be alive.
The Mujahedeen Brigades also held and killed Israeli hostage Shiri Bibas and her two young sons, according to Israeli authorities. Their bodies were returned during a two-month ceasefire, which collapsed in March after the two sides could not agree on terms for extending it to a second phase.
Israel has since expanded its offensive across the Gaza Strip as US, Qatari and Egyptian-led efforts to secure another ceasefire have faltered.
US-BACKED AID GROUP HALTS DISTRIBUTIONS
The United Nations has warned that most of Gaza’s 2.3 million population is at risk of famine after an 11-week Israeli blockade of the enclave, with the rate of young children suffering from acute malnutrition nearly tripling.
Aid distribution was halted on Friday after the US-and Israeli-backed Gaza Humanitarian Foundation said overcrowding had made it unsafe to continue operations. It was unclear whether aid had resumed on Saturday.
The GHF began distributing food packages in Gaza at the end of May, overseeing a new model of aid distribution which the United Nations says is neither impartial nor neutral. It says it has provided around 9 million meals so far.
The Israeli military said on Saturday that 350 trucks of humanitarian aid belonging to U.N. and other international relief groups were transferred this week via the Kerem Shalom crossing into Gaza.
The war erupted after Hamas-led terrorists took 251 hostages and killed 1,200 people, most of them civilians, in the October 7, 2023 attack, Israel’s single deadliest day.
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US Mulls Giving Millions to Controversial Gaza Aid Foundation, Sources Say
Palestinians carry aid supplies which they received from the US-backed Gaza Humanitarian Foundation, in the central Gaza Strip, May 29, 2025. Photo: REUTERS/Ramadan Abed/File Photo
The State Department is weighing giving $500 million to the new foundation providing aid to war-shattered Gaza, according to two knowledgeable sources and two former US officials, a move that would involve the US more deeply in a controversial aid effort that has been beset by violence and chaos.
The sources and former US officials, all of whom requested anonymity because of the sensitivity of the matter, said that money for Gaza Humanitarian Foundation (GHF) would come from the US Agency for International Development (USAID), which is being folded into the US State Department.
The plan has met resistance from some US officials concerned with the deadly shootings of Palestinians near aid distribution sites and the competence of the GHF, the two sources said.
The GHF, which has been fiercely criticized by humanitarian organizations, including the United Nations, for an alleged lack of neutrality, began distributing aid last week amid warnings that most of Gaza’s 2.3 million population is at risk of famine after an 11-week Israeli aid blockade, which was lifted on May 19 when limited deliveries were allowed to resume.
The foundation has seen senior personnel quit and had to pause handouts twice this week after crowds overwhelmed its distribution hubs.
The State Department and GHF did not immediately respond to requests for comment.
Reuters has been unable to establish who is currently funding the GHF operations, which began in Gaza last week. The GHF uses private US security and logistics companies to transport aid into Gaza for distribution at so-called secure distribution sites.
On Thursday, Reuters reported that a Chicago-based private equity firm, McNally Capital, has an “economic interest” in the for-profit US contractor overseeing the logistics and security of GHF’s aid distribution hubs in the enclave.
While US President Donald Trump’s administration and Israel say they don’t finance the GHF operation, both have been pressing the United Nations and international aid groups to work with it.
The US and Israel argue that aid distributed by a long-established U.N. aid network was diverted to Hamas. Hamas has denied that.
USAID has been all but dismantled. Some 80 percent of its programs have been canceled and its staff face termination as part of President Donald Trump’s drive to align US foreign policy with his “America First” agenda.
One source with knowledge of the matter and one former senior official said the proposal to give the $500 million to GHF has been championed by acting deputy USAID Administrator Ken Jackson, who has helped oversee the agency’s dismemberment.
The source said that Israel requested the funds to underwrite GHF’s operations for 180 days.
The Israeli government did not immediately respond to a request for comment.
The two sources said that some US officials have concerns with the plan because of the overcrowding that has affected the aid distribution hubs run by GHF’s contractor, and violence nearby.
Those officials also want well-established non-governmental organizations experienced in running aid operations in Gaza and elsewhere to be involved in the operation if the State Department approves the funds for GHF, a position that Israel likely will oppose, the sources said.
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