US trade policies under the return of Donald Trump to the presidency have raised concerns for Israel’s economy, particularly regarding the export sector.

Proposed tariffs could impact key goods and industries vital to Israel’s economic growth.

In 2024, Israel exported US$14.2 billion in goods, excluding diamonds, to the US, marking a 4.5% increase from the previous year.

Exports of business services, which exceeded US$20 billion in 2021, remain Israel’s largest export category. They account for 48% of its global business services exports, including high-tech.

However, Israel’s economy is vulnerable to potential US tariffs, as seen with previous metal tariffs implemented during Trump’s first term.

Israeli trade officials have expressed concerns over the implications of universal tariffs and targeted measures on critical industries like semiconductors and pharmaceuticals. These sectors together account for US$8.5 billion in annual exports.