The Trump administration has imposed a new 12.5% tariff on imports from Israel as part of a sweeping round of trade measures affecting more than 80 U.S. trading partners. The order took effect just before midnight as temporary tariffs expired.

Israel received one of the highest tariff rates in the latest round, while countries including Canada, Mexico, and Jordan were assigned a reduced 10% tariff.

The administration said the move is tied to efforts to combat forced labor. According to the Office of the U.S. Trade Representative, Israel does not have an explicit legal ban on imports produced with forced labor and lacks sufficient enforcement. The administration did not allege that Israeli-made products are produced using forced labor.

The new tariff is in addition to existing duties, meaning some products that previously qualified for duty-free treatment under the U.S.-Israel Free Trade Agreement may no longer be automatically exempt. Unlike the European Union, Japan, South Korea, Switzerland, and Taiwan, Israel was not granted a tariff cap mechanism.

U.S. Trade Representative Jamieson Greer said the United States has banned imports made with forced labor for nearly a century and urged its trading partners to adopt similar policies.

The administration exempted oil, natural gas, fertilizers, civilian aviation equipment, and generic pharmaceuticals from the new tariffs. President Trump also announced that imported generic drugs will remain tariff-free for two years.

The new tariffs could affect Israeli exporters in sectors including technology, medical devices, chemicals, food products, and industrial equipment. According to U.S. government data, the United States imported approximately $20.6 billion in goods from Israel in 2025, while total goods trade between the two countries reached about $34.4 billion.

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