The United States will impose 17% tariffs on goods imported from Israel under a sweeping new tariffs system that President Donald Trump unveiled on Wednesday.
The tariffs on Israeli goods are less than some Trump rolled out but greater than the 10% baseline that he is assessing on all imported products. They fall into the “reciprocal tariffs” bucket and represent half of the 33% tariffs that Israel has until now assessed on some US goods.
Many imports from the United States have not been taxed under a 1985 free-trade agreement. Attempting to avert Trump’s targeting, the Israeli government abolished all tariffs on US goods on Tuesday. It was not immediately clear whether Trump would adjust the tariffs on Israeli goods as a result, as he did for other countries that previously eliminated tariffs on US goods under Trump’s trade pressure.
"It's our declaration of independence," Trump said at an event in the White House Rose Garden.
Trump displayed a poster that listed reciprocal tariffs, including 34% on China and 20% on the European Union, as a response to duties put on US goods.
Economic officials in Israel are in complete shock over the Trump administration's decision to impose a 17% tariff on Israel. "We are in shock. We were sure that the decision to completely cancel tariffs on imports from the U.S. would prevent this move. But it didn't happen."
An official said: "Its going to be hard, but we will work to change the decision. The decision is unjustified"
BREAKING: List of US reciprocal tariffs pic.twitter.com/aWkUE22vTm
— The Spectator Index (@spectatorindex) April 2, 2025
Hurting global trade?
Other details were not immediately apparent as Trump continued to make remarks that echoed his longstanding complaints that US workers and companies are hurt by global trade.
The uncertainty has rattled financial markets and businesses that have relied on trading arrangements that have been in place since 1947.
The administration has said the new tariffs will take effect immediately after Trump announces them, though it has not yet published the official notice required for enforcement.
The administration, however, did publish an official notice that a separate set of tariffs on auto imports that Trump announced last week will take effect starting on April 3.
Trump has already imposed 20% duties on all imports from China and 25% duties on steel and aluminum and extended them to nearly $150 billion worth of downstream products.
His advisers say the tariffs will return strategically vital manufacturing capabilities to the United States.
Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars. Businesses have complained that Trump's barrage of threats has made it difficult to plan their operations.
Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.
Financial markets were volatile as investors awaited Trump's announcement. US stocks have erased nearly $5 trillion of value since February.
Reactions to Trump's announcement
EU to prepare countermeasures to US reciprocal tariffs, says EU chief
European Commission President Ursula von der Leyen described Trump's universal tariffs as a major blow to the world economy and said that the European Union was prepared to respond with countermeasures if negotiations failed.
"We are already finalizing the first package of countermeasures in response to tariffs on steel," she said in a statement read out in Samarkand, in Uzbekistan, on Thursday ahead of a EU-Central Asia partnership summit.
"And we're now preparing for further countermeasures to protect our interests and our businesses if negotiations fail."
Australia says US tariffs not 'act of a friend,' rules out reciprocal moves
Australian Prime Minister Anthony Albanese said on Thursday the decision by Trump to impose tariffs was not "the act of a friend," but said his country would not place reciprocal tariffs against the US.
Trump said on Wednesday that he would impose a 10% baseline tariff on all imports and higher duties on some of his country's biggest trading partners, in a move that ratchets up a trade war that Trump kicked off on his return to the White House.
Italian PM says US tariffs are 'wrong,' wants to avoid trade war
Italian Prime Minister Giorgia Meloni, seen as close to Trump, said on Wednesday that tariffs introduced by his administration were "wrong" and would not benefit the US.
"We will do everything we can to work towards an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favor of other global players," she said in a statement on Facebook.
"In any case, as always, we will act in the interest of Italy and its economy, also engaging with other European partners," she added.
Canada will impose counter measures
Canada will fight Trump's tariffs with countermeasures, Prime Minister Mark Carney said on Wednesday.
"It's essential to act with purpose and with force, and that's what we will do," he told reporters ahead of a cabinet meeting to discuss Canada's response.
Brazil Congress passes trade retaliation bill
Brazil's Congress approved on Wednesday a bill that sets legal terms for the Latin America's largest economy to react to trade barriers and tariffs imposed by other nations or economic blocs, amid US tariffs announcements.
The Brazilian government said it is evaluating all the possible actions in response to the US' decision to impose 10% tariffs on imports from Latin America's largest economy.
"The Brazilian government is evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization, in defense of legitimate national interests," it said in a statement, adding that it remains open to dialogue and believes US claims the tariffs are reciprocal do not "reflect reality."
South Korea orders emergency measures
South Korea's acting President ordered emergency support measures for businesses that will be impacted by US tariffs, including automobiles, the industry ministry said on Thursday.
At a meeting with the finance minister and other top officials, Acting President Han Duck-soo asked the industry minister to actively negotiate with Washington to minimize the impact of US reciprocal tariffs, according to the ministry.
Costa Rica will engage US
The Costa Rican government said on Wednesday it will engage in dialog with US authorities to seek better access conditions for Costa Rican products, after Donald Trump announced 10% tariffs on the Central American country.
The United States is Costa Rica's top trading partner.
"We will engage in dialog with US authorities to seek the best access conditions for Costa Rican products," the foreign trade ministry's communications office told Reuters.
US tariffs violate free trade deal with Central America, Guatemala says
Guatemala's government said on Wednesday that Trump's baseline 10% tariffs violate the provisions of DR-CAFTA, a free trade agreement between the US, the Dominican Republic and Central American countries including Guatemala.
In a statement from Guatemala's economy ministry, the government said there was room to negotiate with Washington, especially by addressing trade barriers outlined by the US government.
China urges US to cancel reciprocal tariffs
China has urged the US to immediately cancel unilateral tariff measures and properly resolve differences with trading partners through equal dialogue, the commerce ministry said on Thursday.
"Many trading partners have expressed strong dissatisfaction and clear opposition," the ministry said in a statement responding to the announcement of reciprocal tariffs.
China firmly opposes this and will resolutely take countermeasures to safeguard its rights and interests, it said.
Trump's tariffs upend global trade order, will cost jobs, Germany's VDA saysFar-reaching tariffs announced by Trump will weigh on global economic growth and hit jobs, German auto industry association VDA said, urging Europe to seek free-trade agreements quickly.
The move marks the rejection of "the rules-based global trade order - and thus turning away from the basis for global value creation and corresponding growth and prosperity in many regions of the world," said VDA President Hildegard Mueller.
"This is not America first, this is America alone."
Norway will seek to negotiate with the US
Trump on Wednesday announced a 15% tariff on goods imported to the US from Norway, part of a wider effort by the US president targeting trading partners around the world.
"This is bad news, it is very serious," Norwegian Prime Minister Jonas Gahr Stoere told public broadcaster NRK on Thursday.
"There is an opening for negotiations here, the Americans say, and we will use that in every possible way that we can."
Norway, which is not a member of the European Union, has said it is lobbying EU policymakers to prevent what it called a worst-case scenario in which Norwegian exports to Europe could become negatively affected by a union response to US tariffs.
Stoere will lead a delegation to Brussels on Monday to meet with European Commission President Ursula von der Leyen and others, he said.