Editor’s Note (September 2026): This article has been updated to reflect recent tariff developments and current trade policy considerations for U.S. exporters exporting to Israel.
Israel’s dynamic and diverse market offers U.S. exporters opportunities in a wide variety of sectors. Its high-tech, pro-American business community is familiar with U.S. business norms, and a multitude of U.S. firms are already doing business in Israel.
In this article, I’ll look at the history of U.S. trade with Israel; the process of exporting to Israel, including documentation and compliance requirements; and the benefits and considerations for U.S. companies looking to break into the Israeli marketplace.
Since its establishment in 1948, Israel has become a regional economic and military powerhouse, leveraging its prosperous high-tech sector, large defense industry, and concerns about Iran to foster partnerships around the world. However, Israel's economic development has been uneven. Structural issues such as low labor-force participation among religious and minority populations, low workforce productivity, high costs for housing and consumer staples, and high income inequality concern both economists and the general population.
The war with Hamas and broader regional conflict significantly disrupted Israel’s economy, contributing to labor shortages, increased government spending and slower growth. A ceasefire between Israel and Hamas has been in effect since October 2025, and business operations in major commercial centers have largely returned to normal. However, regional security conditions continue to affect transportation, insurance, energy markets and supply-chain planning.
The United States and Israel maintain a long-standing trade relationship supported by the U.S.–Israel Free Trade Agreement (FTA), which took effect in 1985 and was the first free-trade agreement the United States signed with any country. Under this FTA, approximately 98% of goods traded between the two countries are duty-free. (However, exporters should still verify duty rates because some agricultural products may still face tariffs, new tariff policies may apply under broader U.S. trade measures, and special regulatory taxes may apply to certain products.)
The United States is Israel’s single largest trading partner, and Israel is the United States’ third-largest trading partner in the Middle East.
According to the U.S. Census Bureau, total U.S. goods trade with Israel reached about $34.4 billion in 2025, including about $13.7 billion in goods exported from the U.S. to Israel, and about $20.7 billion in goods imported to the U.S from Israel. This resulted in a U.S. goods trade deficit of roughly $7 billion. Recent tariff policies and geopolitical tensions have introduced complexity into the trade relationship.
The U.S.–Israel Free Trade Agreement continues to eliminate nearly all Israeli tariffs on nonagricultural goods imported from the United States. However, it does not necessarily protect Israeli goods entering the United States from additional U.S. tariffs imposed under other trade laws.
In July 2026, the United States imposed an additional 12.5% Section 301 tariff on most goods originating in Israel. The tariffs, which took effect July 24, are part of a broader action covering 60 trading partners over their enforcement of prohibitions on imports made with forced labor.
Certain products are exempt, including specified energy products, pharmaceuticals, critical minerals, civil aircraft and products already subject to certain Section 232 tariffs. Importers should verify the current HTS classification, country of origin and applicable Chapter 99 provisions before determining the final duty rate.
For U.S. companies exporting to Israel, these new U.S. tariffs do not directly increase the duties Israel charges on U.S. goods. They may nevertheless affect bilateral trade, sourcing decisions and negotiations between the two countries.
The potential rewards of exporting to Israel outweigh most challenges exporters may face. Exporters should identify and cultivate business opportunities while building a strategy to minimize the risks.
Leading sectors for exporting to Israel include the following:
Exporters should also consider the broader political environment when doing business in Israel.
The ongoing conflict in the Middle East has affected shipping routes, insurance costs, and supply chains across the region.
Political developments can influence the following:
U.S. exporters should also determine which Israeli product standards apply. Under Israel’s “What’s Good for Europe Is Good for Israel” regulatory reforms, many products that comply with designated European requirements can enter Israel through simplified regulatory pathways. This may benefit U.S. companies already selling into Europe, but companies whose products are certified only to U.S. standards should confirm whether additional testing, certification or documentation is required.
Despite these challenges, Israel remains one of the most advanced technology economies in the Middle East and a significant market for U.S. exporters.
If you’re interested in exploring export opportunities in this region, there are plenty of resources you can lean on for help, including U.S. Commercial Service offices, trade missions, and chambers of commerce.
U.S. Commercial Service Offices
One of the first places to consider are your local and in-country U.S. Commercial Service offices. Commercial Service in-country offices effectively serve as your business partners in Israel—boots on the ground in the country. Commercial service offices also include representation by an agent, distributors or partners who can provide essential local knowledge and contacts that are crucial to your success.
You can learn more about in-country offices in our article, Tapping into the U.S. Commercial Service's In-Country Offices.
District Export Councils (DECs)
DECs across the country help exporters by supporting trade and services that strengthen individual companies, stimulate U.S. economic growth, and create jobs. DEC members also serve as mentors to new exporters and provide advice to smaller companies.
Sponsored by state and local trade offices as well as commercial service offices, trade missions offer introductions to important contacts and networking opportunities. Check into them.
International Trade Administration
The ITA is an excellent resource to help you combat trade problems. ITA staff members are resident experts in advocating for U.S. businesses of all sizes. They customize their services to help solve your trade dilemmas as efficiently as possible. Plus, the ITA makes it easy to report a problem, allowing you to submit your report online.
Chambers of Commerce
Chambers of Commerce may also be a resource when exporting to Israel. You can learn more about various chambers and how they can help smooth the way for your export activities in our article, The Chamber of Commerce Role in Exporting.
Accurate export documentation and attention to procedures are as critical in exporting to Israel as they are for exporting to any other country. An import license is not needed to import the majority of industrial goods into Israel, but importers may need to obtain permits to clear the goods.
It’s important to understand the regulations covering exports to Israel, especially export controls.
The first step in ensuring export compliance is determining who has jurisdiction over your goods: the U.S. Department of Commerce under the Export Administration Regulations (EAR) or the State Department's International Traffic in Arms Regulations (ITAR).
If your goods fall under the jurisdiction of the Commerce Department—which most products do—you must determine if your export requires authorization from the Bureau of Industry and Security (BIS, part of the Commerce Department). To make that determination, first answer the following questions:
There are three ways to classify your products for export controls: You can self-classify your products, submit a SNAP-R request for a ruling, or rely on the product vendor to provide the information. If you’re self-classifying, Shipping Solutions Product Classification Software makes the process easier than manually searching through codes and regulations. You can give it a try for free here.
By classifying your product correctly, you’ll be protecting yourself from potential fines, penalties and even jail time.
Next, companies must use the ECCN codes and reasons for control described above to determine whether or not there are any restrictions for exporting their products to specific countries. Once they know why their products are controlled, exporters should refer to the Commerce Country Chart in the EAR to determine if a license is required.
Although a relatively small percentage of all U.S. exports and reexports require a BIS license, virtually all exports and many reexports to embargoed destinations and countries designated as supporting terrorist activities require a license. Countries fitting that bill are Cuba, Iran, North Korea and Syria.
Part 746 of the EAR describes embargoed destinations and refers to certain additional controls imposed by the Office of Foreign Assets Control (OFAC) of the Treasury Department.
Shipping Solutions Professional export documentation and compliance software includes an Export Compliance Module that uses the ECCN code for your product(s) and the destination country to tell you if an export license is required. If indicated, you must apply to BIS for an export license through the online Simplified Network Application Process Redesign (SNAP-R) before you can export your products.
There are export license exceptions, like low-value or temporary exports, that allow you to export or reexport, under stated conditions, items subject to the Export Administration Regulations (EAR) that would otherwise require a license. These license exceptions cover items that fall under the jurisdiction of the Department of Commerce, not items controlled by the State Department or some other agency.
Surprise! You may be an exporter without even knowing it! Deemed exports, or the disclosure of information or services rather than an actual product, is an important issue to pay attention to when exporting. A deemed export occurs when technology or source code (except encryption and object source code, which is separately addressed in the EAR, is released to a foreign national within the United States).
Sharing technology, reviewing blueprints, conducting tours of facilities, and other information disclosures are considered potential exports under the deemed export rule and should be handled accordingly. You can learn how to apply this principle here.
Restricted party lists (also called denied party lists) are lists of organizations, companies or individuals that various U.S. agencies—and other foreign governments—have identified as parties that one can’t do business with. There are several reasons why a person or company may be added to a restricted party list. For example, they may be a terrorist organization or affiliated with such an organization; they may have a history of corrupt business practices; or they may otherwise pose a threat to national security.
Restricted party screening (or denied party screening) refers to the process in which a company checks a potential customer or business partner against one or more of the restricted party lists to ensure their potential partners are legally accepted. The primary restricted party lists in the United States are published by the Department of Commerce, Department of State, and Department of Treasury. However, several other agencies produce lists as well. These agencies recommend that companies perform restricted party screening periodically and repeatedly throughout the movement of goods in the supply chain.
When exporting to Israel, it’s imperative you check every single restricted party list every time you export because:
Shipping Solutions Restricted Party Screening Software makes it fast and easy to check hundreds of lists at once, and it provides detailed information about potential matches, so you can make an informed decision about what to do next. Give it a try for free.
Israel remains one of the most technologically advanced export markets in the Middle East and a strong partner for U.S. companies. However, evolving tariff policies and regional geopolitical developments mean exporters should monitor trade regulations, logistics conditions, and political developments when planning export strategies.
Exporters also need reliable processes for documentation and compliance. That includes preparing accurate export forms, understanding applicable regulations and screening customers, suppliers and other trade partners against restricted party lists.
That’s where Shipping Solutions can help.
With Shipping Solutions export documentation and compliance software, exporters can quickly create accurate export documents, run restricted party screenings against hundreds of lists at once, and reduce the risk of costly compliance mistakes.
For companies that want additional support, GLOBAL GATEWAY by Shipping Solutions brings everything together in one place. This all-in-one export management service combines expert compliance support, integrated export documentation and discounted international shipping in a single streamlined solution.
Whether you’re just beginning to export or already shipping worldwide, Global Gateway works like an extension of your logistics team—without the added overhead.
You don’t need to master every detail of international trade to succeed globally. You just need the right partner.
Schedule a free, no-obligation consultation to learn how we can support your exports.
This is one in a series of articles exploring exporting to specific countries across the globe—we previously featured China, the United Kingdom, Japan, Mexico, Canada, India, Brazil, Germany, France, the Netherlands, the EU, South Korea, Singapore, Belgium, and Taiwan.
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