On the night of April 3rd, U.S. President Donald Trump initiated a dramatic and sweeping move: imposing broad new import tariffs on a long list of countries, including a 17% duty on Israeli goods. This is not a technical adjustment, but a political and economic earthquake. Far from a measured or strategic economic policy, this is a populist gesture with dangerous global implications. This is not how an economic superpower should act in 2025.
Markets were quick to respond—and they did so with panic. By Friday, the S&P 500 had dropped nearly 6%, the NASDAQ plummeted by 5% and major tech stocks, including Apple and Tesla, saw sharp declines. The pace of the sell-off is so intense, it's become difficult to keep up. Forecasts were rapidly revised, and a spike in U.S. inflation now seems inevitable—affecting every American household.
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US President Donald Trump reveals his new sweeping tariff policy, April 3, 2025
(Photo: AP Photo/Mark Schiefelbein)
Trump argues that tariffs are necessary to protect American jobs, claiming unfair competition—especially from China, but now also from Israel—is preventing American industries from thriving. He believes tariffs will bring manufacturing back to the U.S., boost employment and restore American pride. But this logic is outdated and disconnected from economic reality.
The global economy of 2025 is built on interdependence. Supply chains are international, not local. American automakers rely heavily on parts and raw materials from overseas—often close to 50% of a vehicle's components. Even foreign automakers have long been manufacturing within the U.S. to reduce costs. Tariffs not only raise prices for consumers; they also hurt the very companies they are meant to protect.
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The impact is already being felt in Israel. Israeli export companies, especially in manufacturing and tech, are now facing a sudden and steep import tax. This move casts doubt on the longstanding strategic alliance between Israel and the U.S., sending ripples of uncertainty through the Israeli economy and the business sector. Israel is not an economic rival—it is a key partner. Treating it otherwise sends a troubling message.
This is not a temporary turbulence—it’s the early sign of a broader economic doctrine rooted in isolationism, ego-driven policy and a nostalgia for a world that no longer exists. If this approach continues and spreads, it could undermine one of the core engines of prosperity in recent decades: global cooperation through open markets.
Dr. Amit SerusiWhat we are witnessing is not industrial pride—it is industrial fantasy. A world where countries turn inward, retaliate with tariffs and abandon international trust is a world more vulnerable to recession, inflation and prolonged instability. Investors flee uncertainty, and what economies need most—especially in volatile times—is stability and confidence.
Strong economies are not built through confrontation and disruption. They are built on trust, partnerships and predictable policy. The market plunge is not just a reaction to new tariffs—it is a warning.
We don’t need dramatic declarations or bravado. We need thoughtful, moderate leadership with long-term vision—leaders who understand that in today's global economy, cooperation is strength and isolation is weakness.
- Dr. Amit Serusi is a strategic consulting expert.