Saturday, April 19, 2025

US reciprocal procurement demands put Israel in a bind

 https://en.globes.co.il/en/article-us-reciprocal-procurement-demands-put-israel-in-a-bind-1001508017

The US administration demands on tariffs are putting Israel in a bind, with the issue of reciprocal procurement at the core. One of the main demands raised by the Americans is against the Israeli requirement for foreign suppliers who win tenders to either procure local products or invest in the country.

This type of procurement injects billions of dollars into Israel every year and supports hundreds of local companies. However, government ministries are currently holding feverish discussions on the dilemma of whether to exempt US companies from reciprocal procurement to gain relief in Trump's tariff plan. If this does happen, entire industries, especially in the defense sector, could suffer a painful blow.

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