Israel is among dozens of countries hit with a higher duty on local goods exported to the US, after President Donald Trump’s administration unleashed a fresh round of tariffs targeting its trading partners.

The Trump administration on Friday imposed new tariffs of 10% and 12.5% on goods from more than 60 trading partners, premised on the claim that foreign countries are not doing enough to clamp down on goods made with forced labor passing through their supply chains.

The tariffs came into effect just as a temporary 10% global tariff expired. Under the new tariff framework, Israel was levied a 12.5% duty on local goods exports, together with a list of countries, including Australia, Brazil, China and Japan, which the US says don’t have, or have failed to adopt, a forced-labor import ban.

Other trading partners, including the European Union, India, Mexico and the United Kingdom, are subject to a 10% tariff after committing to adopt, and effectively enforce, a forced-labor import prohibition.

“We are to some extent disappointed about the decision, as Israel took the concerns of the US very seriously and has shown great willingness to accommodate them,” Economy and Industry Ministry deputy trade commissioner Yifat Alon Perel told The Times of Israel. “We do feel behind vis-à-vis other competitors of Israeli manufacturers around the world that currently have better market access in the US.”

She added, “We are in ongoing negotiations and very much hope that our biggest ally and friend will not overlook Israeli concerns, and correct the decision at least to the level of other countries [with a lower tariff].”

But negotiation efforts between Israeli officials and the US administration have so far failed. Inevitably, local exporters of goods to the US, and the economy in general, will be hurt by the new trade tariff regime, ad some will be forced to relocate and produce elsewhere or shut down altogether, the Israel Manufacturers’ Association has warned. Revenues from corporate taxes........

© The Times of Israel