Israeli business leaders and economists launched a violent attack on Prime Minister Benjamin Netanyahu, accusing him of failing to spare Israel for customs duties approved by US President Donald Trump, which also included Israel … according to the Israeli newspaper Yediot Aharonot today /Sunday.
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The Israeli Prime Minister is currently facing sharp criticism from economic officials and industrial leaders because of what they describe as a great failure to prevent comprehensive American customs duties on Israeli exports, while global markets are suffering from the sudden commercial step that Trump has taken.
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The new customs duties imposed by Washington by 17% on Israeli goods – as part of a broader package of Trump’s fees last week – raised concern in the markets as the Tel Aviv Stock Exchange was subjected to sharp declines when the circulation opened today.
Business leaders said in an indirect accusation of the Prime Minister: “His indifference is incomprehensible, after all, and it is clear that Israel will also suffer from great harm.”
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The newspaper quoted a senior official in the Ministry of Finance – who asked not to be identified – as saying that this step is “stemming from a fundamental misunderstanding of the potential repercussions,” adding: “There is an irreversible trauma, even with the clarification that Israel will be severely affected.”
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For his part, Dr. Ron Tomer, President of the Israeli Federation, called for immediate negotiations with the United States to alleviate the effects of customs duties.
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An economic advisor close to Netanyahu stated that the Prime Minister could have submitted stronger arguments for Trump, and he had to explain that Israel has been in war for more than a year, that the economy was suffering, the deficit is huge, and the exports are vital, instead, focused on dismissing the head of the Public Security Service (Shin Bet), pushing controversial legal reforms, and proceeded to an unnecessary journey to Hungary in an emergency time.
Sources hope that Netanyahu will take advantage of his scheduled meeting with Trump tomorrow / Monday to cancel customs duties or reduce them, even though the expectations are low experts. Economists say that the repercussions of customs duties may be severe on the Israeli economy, as export factories face the possibility of closure and bankruptcy, especially among small manufacturers in addition to loss of jobs.
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Some companies may transport their operations to the United States, and it is expected that the prices of consumer goods will rise sharply as a result of the reprisal commercial measures taken by other countries. These successive effects may increase inflation and expand the Israeli budget deficit as a result of a decrease in tax revenues from exports.
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Also, the Minister of Finance, Smotrich, was criticized for not meeting the US Secretary of Commerce, the direct official of customs duties, during his recent visit to Washington. His office confirmed that he only met the Treasury Secretary Janet Yellen.
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Meanwhile, the fluctuation of the Israeli shekels and the dollar rose by 0.4% to 3.7,200 shekels
