Bank of Israel: Trump's Tariffs Put Economy at Risk

The Bank of Israel said that US tariffs are impacting the local economy, with markets and technology investments at risk.

Bank Governor Amir Yaron explained in an interview with Bloomberg that market turmoil and the slowdown in global trade are the two biggest concerns for Israel, given that the country's exports rely on services, which are largely exempt from the new tariffs.

Yaron noted that "many Israeli pension funds invest in the stock market, and our technology sector relies heavily on American venture capital money, so the uncertainty weighing on these two sectors directly impacts our economy as well."

The Trump administration imposed 17% tariffs on Israel, making it one of the hardest-hit countries in the Middle East despite its close alliance with Washington.

Yaron is an Israeli-American economist and the current Governor of the Bank of Israel. Yaron served as Professor of Banking and Finance at the University of Pennsylvania.