Israel fails to receive exemption from US imported aluminium and steel tariffs

Like many other trading allies of the United States, Israel too could not win a reprieve from the US additional tariffs on aluminium and steel imports. In response to this, a group of Israeli manufacturers prompted warnings that this could bring in a “death blow” to local industries.

In March, the US President had imposed a 25 per cent tariff on imported steel and 10 per cent on imported aluminium, under a little-used weapon in US trade law declaring that these metal tariffs were meant to protect its domestic producers.

So far, only Brazil, South Korea, Australia, and Argentina had been granted a relief from the tariffs. The European Union, Canada, and Mexico, despite being important trading partners of the US, could not win a permanent relief after the expiry of the temporary exemption on May 31, 2018.

Israel also failed to win an exemption from the tariffs, as reported by the Calcalist business daily on Monday. Meetings between officials from Israel’s economy ministry and the Office of the United Trade Representations on this matter also seemed to go in vain.

“We are disappointed that despite Israel’s special status as a true friend of the US and the free trade agreement [between the countries], Israel has not been excluded from the imposition of tariffs like Australia,” Calcalist quoted Catarivas.

Catarivas also expressed concern over the impact of duties on local industries which rely on aluminium and steel as inputs.

However, the Globes financial daily, on the other hand, reported that the effect would not be acute as Israel’s aluminium and steel exports to the US amounted only US$25 million a year until now.