April 11, 2025 – Tel Aviv — Fears of a looming global trade war have triggered a surge in demand for state-backed credit insurance among Israeli exporters, following a controversial tariff announcement by former U.S. President Donald Trump.
Ashra, Israel’s government-owned foreign trade insurance company, reported a dramatic rise in requests for credit insurance. In the first quarter of 2025 alone, approvals soared to NIS 4 billion ($1.06 billion), up fourfold from NIS 1 billion in the same period last year. Exporters are seeking protection amid rising global uncertainty and potential disruptions to key markets such as the U.S. and Europe.
“The future of trade relations is uncertain, and Israeli exporters are anxious,” said Ashra CEO David Klein. “Even those not trading directly with the U.S. are facing increased credit risks due to economic instability in customer markets.”
Trump’s recent tariff proposal hit Israel with a 17% import levy, despite Israel lifting duties on U.S. goods in a last-minute bid to avoid inclusion. Although the tariffs have been paused for 90 days, the outlook remains unclear. During a Washington visit, Israeli Prime Minister Benjamin Netanyahu tried to negotiate a rollback, but received no firm commitment.
Ashra says the trade tensions are compounding existing geopolitical concerns, including the ongoing war in Ukraine and conflict with Hamas, driving up demand for credit protection in sectors like defense, water infrastructure, and agri-tech. Recent insurance requests cover NIS 7.5 billion in transactions targeting markets in Africa, Latin America, and Eastern Europe.
The Israeli government currently backs up to $3.5 billion annually in export insurance. With rising demand, Ashra may seek to raise this ceiling. Klein noted that the Finance Ministry is prepared to expand the cap once usage nears 80%.
To help offset risks, Ashra is advising exporters to diversify beyond traditional markets. “Africa, Southeast Asia, and South America are key focus areas,” said Klein. “If one big market closes, others must open.”
If the tariffs persist, Israel could face an annual export loss of $2.3 billion, and between 18,000 and 26,000 jobs could be at risk, according to the Manufacturers Association of Israel. In 2024, Israeli exports to the U.S. totaled over $13.5 billion.
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