The European Union reportedly announced Wednesday that it is preparing to suspend preferential tariff treatment on more than one-third of Israeli exports to the bloc, escalating economic pressure on Jerusalem even as the conflict in Gaza continues.
Senior officials in the European Commission, the EU’s executive branch, said they had presented a package of measures to member states that would hit Israeli goods with higher duties, sanction two ministers in the Israeli government, and increase restrictions on Hamas operatives.
The proposal also seeks to freeze certain EU-backed programs supporting Israel’s public administration.
Commission officials estimated that the tariff increases alone would cost Israel about 227 million euros — roughly $269 million — in additional duties each year.
According to a press release issued Wednesday, EU imports from Israel totaled 15.9 billion euros in 2023. Machinery, transport equipment, and chemicals made up the largest categories, but officials said the new tariffs would target around 37 percent of Israeli exports, including goods such as fruit and rubber products.
The move would suspend trade elements of a decades-old agreement between the EU and Israel, forcing Israeli goods to be subject to World Trade Organization “Most Favoured Nation” rates.
Officials stressed that the proposal does not amount to a full trade ban, and would not touch areas such as capital movement or customs procedures.
Still, the step marks a dramatic policy shift. It reflects the EU’s mounting willingness to use economic leverage against Israel, even as the bloc claims to be acting in balance by also tightening measures on Hamas.
Commission President Ursula von der Leyen said earlier this month that Europe would begin suspending trade ties with Israel, citing public pressure to take a harder line over Gaza.
On Wednesday, von der Leyen repeated her demands for Israel to halt military operations. “The horrific events taking place in Gaza on a daily basis must stop,” she said in a statement. “There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas.”
The proposal still requires approval by a qualified majority of EU member states — a hurdle that will test the bloc’s internal divisions over Middle East policy.
Some governments, particularly in Eastern Europe, have been staunch defenders of Israel’s right to self-defense, while others have pressed for stronger sanctions.
For conservatives, the EU’s move illustrates a broader pattern: European leaders adopting punitive economic policies that disproportionately target allies defending themselves from terrorism.
While Brussels frames the plan as a balanced approach, critics see the tariffs as another example of international institutions placing political pressure on Israel while downplaying Hamas’s role in triggering the crisis.
Representatives of the Israeli government did not immediately respond to requests for comment.
If approved, the EU’s measures could deepen tensions between Israel and one of its major trading partners at a time when Jerusalem is already under heavy scrutiny on the world stage — and when many conservatives argue the West should be standing firmly behind Israel, not undermining it.
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