By Steven Scheer
JERUSALEM (Reuters) -Israeli Finance Minister Bezalel Smotrich said on Thursday he was convening ministry officials to formulate a course of action to protect Israel’s economy in the wake of President Donald Trump’s decision to impose U.S. import tariffs.
As part of a sweeping new tariff policy, Israeli goods exports to the United States face a 17% tariff.
Smotrich said he would discuss with ministry officials, after speaking with economic leaders, how to “analyse opportunities and risks and formulate courses of action, both in relation to President Trump and his team and regarding the necessary steps to strengthen Israel’s industry”.
Trump’s move came after Israel on Tuesday cancelled its remaining tariffs on U.S. imports.
Israel and the U.S. signed a free trade agreement 40 years ago and around 98% of goods from the U.S. are now tax-free. The finance ministry noted that tariff collection from U.S. imports – mainly in the agricultural sector – stands at about 42 million shekels ($11.3 million) a year.
Ron Tomer, president of Israel’s Manufacturers’ Association, said the tariffs could harm Israel’s economic stability, deter foreign investments, weaken the competitiveness of Israeli companies in the U.S. market, and set back trade and investment relations between the countries.
“We hope and believe that the decision will be short-lived, and we will work with the Ministries of Finance and Economy to reverse it,” Tomer said.
The association said it would work on formulating strategies to cope with the new situation and seek new export markets, and called for continued intensive negotiations between Israel and the U.S. to bring about a change in the decision or at least reduce its scope.
($1 = 3.7106 shekels)
(Reporting by Steven Scheer. Editing by Alison Williams and Mark Potter)
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