Client updates /  International Law

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 May, the Ministry of Economy imposed a temporary guarantee on aluminum imports from China. As a result, Israeli aluminum importers have already reduced their orders from China by 50%. Simultaneously, access to the Turkish market has been almost entirely blocked for Israeli buyers.

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 “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 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.

The Supreme Court noted that, by its nature, the essence of a brokerage transaction is joining two parties into one transaction. Therefore, treating the transaction as providing a service to each party separately—a foreign resident and an Israeli resident—does not reflect the true economic essence of the service.

The United States, the European Union, and other countries have been imposing economic sanctions on Israel for quite some time. The recent sanctions imposed on Israeli settlers suspected or convicted of committing violence against Palestinians may be a harbinger of a broad regime of sanctions that may affect business activities in Israel.

Israeli companies in the “risk zone” must ascertain if they are subject to sanctions and adopt a significant sanctions compliance plan.

The economic sanctions the United States has imposed on Russia have possible implications for the Israeli business community.