As many as 26,000 Israelis stand to lose their jobs if the tariffs imposed by U.S. President Donald Trump remain in place, the Manufacturers Association of Israel warned on Sunday ahead of a meeting between Israeli Prime Minister Benjamin Netanyahu and the U.S. president.
According to an analysis published by the association, exports will take an annual $2.3 billion hit from the tariffs if fully implemented, and between 18,000 and 26,000 Israelis could potentially lose their jobs.
The tariffs issue is expected to feature prominently in the talks between Netanyahu and Trump, in the wake of the 17% U.S. tariff announced on April 2 on goods imported from the Jewish state—10% effective at 12:01 a.m. EDT on April 5 and an additional 7% at 12:01 a.m. EDT on April 9.
The move is expected to impact “the competitiveness of the entire economy, on the ability to attract investments, on our technological superiority and more,” Ron Tomer, the head of the Manufacturers Association, warned in a letter to the prime minister on Sunday.
“In light of the expected serious consequences, I call on you to take all diplomatic and economic measures at your disposal to prevent the imposition of taxes,” Tomer urged Netanyahu.
The association warned that if Trump expands his tariff initiative to also include the Jewish state’s pharmaceutical and chip industries, the damage to Israeli exports could reach an annual $3 billion.
The areas expected to be hit hardest were hi-tech, biotech, plastic, metals, chemicals and fuels, robotics and electronic components.
Ahead of Netanyahu’s departure for Washington, Israeli Finance Minister Bezalel Smotrich said he had briefed the premier on the economic implications of the tariffs and ways to protect the country’s industries and economy.
Smotrich said on Thursday that he had been personally speaking to top industry leaders about the impact of the tariff, and had led a discussion with professionals in his ministry to further “analyze opportunities and risks and formulate courses of action.”
Ahead of Trump’s April 2 announcement, Smotrich signed an order approving the elimination of all remaining tariffs on imported U.S. goods. The Trump administration based its 17% tariff on Israel on Washington’s $7 billion annual trade deficit with the Jewish state.
