In early 2025, a new U.S. tariff policy announced by President Trump will take effect. Under this plan, tariffs will be imposed on imports from many countries – including Israel. The move is part of an aggressive strategy aimed at reducing America’s dependency on foreign goods and strengthening domestic industry, while also putting economic pressure on foreign governments.

For Israel, the tariff stands at 17% – relatively low compared to countries like Japan and members of the European Union, whose exports will face tariffs of 25% or more. This means that while Israeli exporters of physical goods will feel the impact, the new conditions are still preferential compared to other Western nations.

And what about the tech sector? The impact here is expected to be minimal. Most Israeli tech companies export services – software, consulting, and development – rather than physical goods. For them, the new tariffs are unlikely to change much. In fact, the policy could create a new competitive edge for certain Israeli exporters. As U.S. importers look for alternative sources, Israel may emerge as a preferred option. Time will tell.