Clients updates / International Law

The United States President recently announced the imposition of new 25% to 100% tariffs on pharmaceuticals, heavy-duty trucks, upholstered furniture, and kitchen and bathroom cabinets. The move is rocking markets and is likely to impact shipping costs, the furniture industry, and trade relations with various trading partners. It could also affect Israeli companies in various sectors.

The US Federal Court of Appeals ruled recently that most of the tariffs imposed by US President Donald Trump as part of the trade wars are unlawful. However, the court decided that, for the time being, these tariffs will remain in effect. This is a landmark decision with potentially wide-ranging implications for the US and global economies, as well as for the balance of powers within the US federal government.

In July 2025, the European Competition Commission imposed a EUR 489,000 fine on Alchem International Pvt. Ltd. and its Hong Kong subsidiary for their involvement in a pharmaceutical cartel involving the active ingredient used in the manufacture of an abdominal antispasmodic medicine.

The purpose of this update is to provide the latest developments on the various tariffs being imposed on exports to the United States. The tariff situation is changing frequently, sometimes on a daily basis. We strive to obtain updated information and to post updated versions.

On April 2, 2025, US President Donald Trump announced his intention to impose reciprocal tariffs of 10% on all goods imported into the United States, and higher “special reciprocal tariffs” on imports from several countries with whom the United States has a large trade deficit.

When US President Donald Trump took office, it seemed the question of personal sanctions against extremist right-wingers in Israel was off the table. Indeed, in one of his first decisions, Trump lifted the sanctions imposed on a small number of Jewish settlers whom the United States had accused of committing violence against Palestinians in the West Bank, as well as on several extremist right-wing organizations.

The Industrial Cooperation Authority at Israel’s Ministry of Economy recently announced that it had blacklisted the Chinese company DAQO, which won a tender for the supply of components to the Israel Electric Corporation, because it failed to fulfill its reciprocal procurement obligation with Israel.

The “What’s Good for Europe Is Good for Israel” reform came into effect at 2025, with considerable resonance. This reform allows importers to import diverse products to Israel in a new standardization track, based on compliance with the requirements of strict European regulations and standards.

In July 2024, Israel’s Ministry of Economy imposed a 61%-146% temporary guarantee on aluminum imports from China to protect local industry from dumping. Recent guideline updates reinforce the focus on anti-dumping enforcement amid global trade tensions.

Foreign direct investments (FDI) in critical Israeli infrastructure and services, especially by entities representing foreign countries, are subject to oversight, mainly to ensure national security.

In May, a US federal court ordered Israeli firm NSO Group to pay $168 million to WhatsApp. The ruling raises key questions about US jurisdiction over foreign companies and defense tech regulation.

EU foreign ministers have decided to explore the possibility of cancelling the EU-Israel Association Agreement due to allegations that the war in Gaza is raising doubts concerning Israel’s commitment to the safeguarding of human rights.

During the Swords of Iron War, it became evident that employees of the United Nations Relief and Works Agency (UNRWA) were working for Hamas and had participated in the October 7 massacre.

A court ruling handed down last month examined a fundamental practical issue: Can a material change be made in an imported product in order to change its classification for customs purposes?

The provision eliminating the de minimis exemption for low-value imports from China to the United States—previously granted for products valued under USD 800—has come into effect.

On Tuesday, April 29, 2025, the President of the United States signed an Executive Order and a Presidential Proclamation, easing some of the customs tariffs on automobiles imposed at the beginning of April.

On April 5, 2025, the United States imposed a 10% reciprocal tariff on all products being imported into the United States (with exceptions). In relation to countries with a large trade deficit with the United States – including the State of Israel – a special reciprocal tariff was imposed on imported products, which is calculated according to the magnitude of the trade deficit. The special reciprocal tariff was frozen for 90 days in order to allow the parties to reach agreements on ways to reduce the trade deficit.

According to press reports, on the eve of the Passover holiday, the Minister of Economy and Industry, Nir Barkat, decided to adopt the recommendation of the Advisory Committee on Trade Levies and impose a dumping levy on cannabis imports from Canada at a rate of up to 165% (the levy varies depending upon the manufacturer). On April 21, 2025, the Minister of Finance wrote a letter to the Minister of Economy expressing his opposition to the imposition of the levy, and the decision was put on hold.

Significant tariffs are currently being imposed on international trade between China and the United States, which effectively blocks direct trade between the two countries.

President Trump has repeatedly called for a lowering of the interest rate in the United States, while intensifying his attacks against the Chairman of the Federal Reserve, Jerome Powell, and threatening to fire him. According to recent reports, removing Powell is of the table for now, but there is no guarantee the proposal will not resurface in the future.