Will Trump's tariffs be blocked? The government has banned the import of goods produced by forced labor

The government has approved a proposal to ban the import into Israel of goods produced, in whole or in part, through forced labor. This is an attempt to block at the last minute the new US tariffs announced by President Donald Trump over the weekend.

The decision instructs the Minister of Economy and Industry to establish a procedure that will prohibit the import of products manufactured using forced labor, in accordance with standards accepted in international law. At the same time, an inter-ministerial team led by the National Economic Council in the Prime Minister's Office will continue to formulate an effective implementation and enforcement mechanism, which will be submitted for government approval within 90 days.

The Israeli move follows a change in the legal strategy of the Donald Trump administration. After the US Supreme Court struck down in February most of the tariff program that relied on emergency powers, the administration chose to base its policy on a new path: trade investigations focusing on countries that it claims are not taking sufficient steps to prevent the import and production of goods made using forced labor.

Over the weekend, the US administration published a list of about 60 countries for which new tariffs were set, including Israel, which is expected to be subject to a 12.5% tariff on exports to the US (compared to 10% today) — unless it can convince the US administration that it meets the new requirements regarding forced labor. The proposal approved by the government determines that Israel will comprehensively ban the import of products made with forced labor, thereby adopting a policy similar to that on which the US administration is now basing itself. Consequently, Israel will be able to argue that it meets the new standard set by Washington regarding the ban on trade in products made with forced labor, thereby strengthening its request for a reduction or cancellation of the tariff.

In the business sector, there was criticism over the weekend that the move came late. According to Ron Tomer, former president of the Manufacturers Association and owner of the pharmaceutical company Unipharm:

"The US administration did not change its position on the issue overnight. The intention to base tariff policy on forced labor has been known for some time, and the American investigation has been ongoing for weeks. It would have been possible to start earlier in adapting legislation and regulation in Israel and even to conduct more intensive negotiations with Washington."