How Trump’s Tariffs Could Be Great For Israeli Consumers

6 Comments / 6 Comments

1. @leanmarc
   Correct, but recall that the US is only charging half of the value of what they believe the real value of the trade difference with other countries. So while they leveraged 17% on Israel, this would mean that they calculated a 34% difference coming from Israel. But the regressive VAT is clearly a very large part of the problem as you suggest, but not all of it, not according to Navarro, Trump and Bessent.

2. i think much simpler explanation. 17% VAT is barrier to free trade (and predatory tax on Israelis)

3. Netanyahu Says Will Seek Relief from Tariffs in Meeting with Trump

   https://www.algemeiner.com/2025/04/06/netanyahu-says-will-seek-relief-from-tariffs-in-meeting-with-trump/

4. @Peloni Sounds like Tom Lehrer’s “The New Math ”

   https://youtu.be/9mc7eb1i9o4?si=P-VVSNEwR2DJUlDv

5. But, seriously, why is there a 17 percent American tariff on Israeli goods?

   Smotrich explains it here:
   https://www.israpundit.org/israel-shocked-after-trump-slaps-17-tariff-on-israeli-imports-finance-ministry-to-analyze-implications/
   Here is the explanation:

   The rate of 17% was calculated by using the U.S. trade deficit with Israel of $7 billion (Israeli exports to the U.S. total $20 billion, Israeli imports from the U.S. total $13 billion per year).

   According to the finance ministry, the U.S. administration took 7 (the trade deficit) and divided it by 20 (Israeli exports to the U.S.), equaling 0.35. This was then divided by two, and the resulting number (rounded up) is 17, which is the tariff.

6. I remember the Osem versus Heinz Ketchup decision. Israeli law requires more than a tiny anount of tomato in ketchup. I remember Reagan cutting federal subsidies for school lunches decades earlier. See, I bet you didn’t know that ketchup is a vegetable.

   Well actually in many Japanese and Korean homes there and here, it kind of is.

   See Omurice

   But, seriously, why is there a 17 percent American tariff on Israeli goods?

   Higher than Iran and Turkey at 10 percent.
   Wow. I just looked on Amazon and a 710g bottle (25 oz) of Osem is $25 and a 64 oz bottle of Heinz is just under $8.

   The tastiest feta cheese comes from Israel but the cheapest is from Bulgaria. (2nd tastiest though I also like Greek Dodoni which is priced in the middle. Israeli products which feature prominently in every kosher section, are way more expensive.