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Israel

US Revised Tariffs (%)

15

Ease of doing business

theboardiQ Tariffs Dashboard:

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Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.

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Revised Tariff %
Original Tariff %
Country Tariff Rate %
Share of US Imports % (1 implies <1%)
15
17
2.6
1
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
14.79
22.22
-7.43

Implications

As of late January 2026, the trade relationship between the U.S. and Israel is undergoing a significant "repricing" phase. While broad global tariffs have been applied, bilateral negotiations have secured critical exemptions for certain sectors.


1. Latest US Tariffs Update (January 2026)


Following the implementation of a 15% baseline tariff on most Israeli goods in late 2025, several key updates have emerged this month:


  • Agricultural Extension: On December 29, 2025, a presidential proclamation extended duty-free access for specific Israeli agricultural products through December 31, 2026.

  • Sector-Specific Relief: Negotiations in early January 2026 have led to a phased "reciprocal" plan. Israel is granting tariff exemptions to roughly 300 U.S. food items (beef, dairy, fruits) in exchange for relief on Israeli defense and tech exports.

  • Advanced Chips: A new 25% duty on high-performance semiconductors (effective Jan 15, 2026) initially sparked concern, but "use-based exclusions" for U.S. infrastructure development have shielded many Israeli AI chip designers.


2. Major Companies Impacted


The impact is split between companies facing higher export costs and those benefiting from continued strategic cooperation.

Company

Sector

Impact Type

Note

Intel (Israel)

Semiconductors

Mixed

Faces new 25% AI chip duties, but shielded by infrastructure exemptions.

Teva Pharmaceuticals

Healthcare

Negative

Pharmaceutical components are under ongoing Sec. 232 investigations.

Elbit Systems

Defense

Positive

Benefiting from prioritized "defense export" tariff relief negotiations.

Check Point

Cybersecurity

Neutral

Services (software) remain largely exempt from physical goods tariffs.

Strauss Group

Food/Agri

Positive

Protected by the 2026 duty-free agricultural extension.

3. GDP & Balance of Trade (BOT) YTD


  • GDP Growth (2026 Forecast): The Bank of Israel has raised its 2026 GDP forecast to 5.2%, signaling a strong post-conflict rebound despite the "tariff tax." The OECD remains more conservative at 4.0% to 4.9%.

  • Trade Balance (Dec 2025/Jan 2026):

    • Israel’s trade deficit stood at -$3.2 billion in December 2025.

    • Exports: Rose 7.8% YoY (led by tech and defense).

    • Imports: Decreased 7.8% YoY, narrowing the gap as Israel reduced its reliance on certain foreign consumer goods due to higher costs.


4. SWOT Analysis: Israel’s Trade Economy 2026

Strengths

Weaknesses

• High-tech services (50%+ of exports) are tariff-exempt.


 • Global reliance on Israeli AI and Cyber security.


 • Highly educated, resilient workforce.

• High concentration in a single sector (Tech).


 • Rising production costs compared to competitors (e.g., Turkey).


 • High debt-to-GDP ratio (~69%).

Opportunities

Threats

• "Permanent" agricultural trade modifications by end of 2026.


 • Privatization of state-owned defense firms attracting FDI.


 • Commercialization of "battle-tested" AI and aerospace tech.

• Potential 25% "reciprocal" tariff hikes if trade deals aren't ratified.


 • Persistent regional instability affecting tourism.


 • Broadening of U.S. sanctions on trade with Russia/China impacting Israeli firms.


US Revised Tariffs

Country Tariffs

Balance of Trade

Commercial Guide

Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals

Tariff Rate for US

World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.

US Imports Guide 

United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.

Investing in USA

theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters

Sources : ForbesUSDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia International Trade Administration

theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.

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