The Finance Ministry responded to US President Donald Trump's announcement that Israel would face 15% tariffs on goods imported from Israel, saying the rate is at the "lower end" and including Israel in this group "reflects positive dialogue."
"The tariff rate set by the US for Israel is at the lower end among countries with a trade deficit with the US, and it is lower than the rate set for Israel on April 2," the Finance Ministry stated.
"Including Israel in this group reflects the positive dialogue and engagement between Israel and the administration. These discussions are ongoing with the goal of reaching a full and improved agreement.”
The rate set for Israel is down from the initial 17% rate issued by the US president in the executive order signed in April, which imposed tariffs on a host of nations.
Dr. Ron Tomer, president of the Manufacturers’ Association of Israel, expressed disappointment, saying the decision fell short of expectations given the close bilateral ties.
“It would have been appropriate to expect Israel’s great friend to reduce the tariff even further,” he said, “to a level that would express the closeness and special relations between the countries in all areas, including economic and industrial.”
Despite the friction, Israeli officials remain optimistic that a negotiated solution can soften the blow of the policy. Talks with US counterparts are expected to continue in the coming weeks.
The measure, outlined in a statement issued by the White House, is a continuation of Trump's earlier Executive Order 14257, which declared a national emergency in response to what the administration described as "large and persistent" US goods trade deficits.
The new directive modifies the US Harmonized Tariff Schedule and applies elevated tariffs to a long list of trading partners, including key American allies such as Israel, Japan, South Korea, and members of the European Union (EU).
Israel is not subject to a 15% ad valorem tariff on all goods exported to the United States unless otherwise specified under exceptions.
Decision made by what it termed a 'continued lack of reciprocity'
According to the Trump administration, the decision was driven by what it termed a "continued lack of reciprocity" in trade relationships and a failure by certain partners to align adequately with US economic and national security objectives.
"Despite having engaged in negotiations," Trump stated, "some trading partners have offered terms that, in my judgement, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters."
The White House emphasized that these tariffs are a response to imbalances it views as harmful to US manufacturing, supply chains, and economic sovereignty. Goods from affected countries, including Israel, will face the new tariffs starting in seven days from the order's signing, unless already in transit before the deadline.
The executive order leaves open the possibility of easing or removing the new tariffs should countries, including Israel, conclude new trade and security agreements with the United States. Until then, the tariffs will remain in place and be strictly enforced.
Trump also announced tariffs up to 41% on dozens of countries, again citing emergency powers he says he is using to shrink the country's trade deficits with many of its trade partners.
Pesach Benson/TPS-IL contributed to this report.