The Israel Manufacturers Association has warned that the 17% tariff imposed by US President Donald Trump on Israeli products could deal a $2.3 billion blow to the Israeli economy, potentially causing between 18,000 and 26,000 job losses.

This warning came hours before Israeli Prime Minister Benjamin Netanyahu’s departure to Washington.

While Israel had hoped to avoid the tariffs announced by Trump, it removed all taxes on goods imported from the US last week. However, it still faces a 17% tariff from the US.

According to The Times of Israel, Israel Manufacturers Association President Dr. Ron Tomer, in a letter to Netanyahu, requested an urgent initiative with the Trump administration to remove these tariffs by using all possible means.

According to the analysis published by the association and presented to Netanyahu, if the tariff remains at 17%, Israel’s exports will suffer a $2.3 billion loss, and between 18,000 and 26,000 Israelis will be at risk of losing their jobs.

The association also warned that if Trump expands the tariffs to include the pharmaceutical and chip sectors, which have not yet been affected, the damage to Israel’s exports could reach $3 billion.

The areas expected to be most affected include biotechnology, plastics, metals, chemicals and fuels, and high technology, including robotics and electronic components.

The US is Israel’s largest trading partner. In 2024, the US imported over $13.5 billion worth of products from Israel.

Tomer stated in his letter that the tariffs could negatively impact Israel’s overall economic competitiveness, its capacity to attract investment, and its technological superiority. In a worse-case scenario, taxes on electronic products could also directly and negatively affect the export of software and IT services, he warned.

“In light of the expected serious consequences, the government needs to prevent the implementation of these tariffs by using all the diplomatic and economic tools at its disposal,” said Tomer, arguing that the damage to the Israeli economy could be prevented with decisive and rapid steps.

According to ten senior commanders and officials who spoke to Reuters, some Iran-aligned militia groups in Iraq, known as Hashd al-Shaabi (Popular Mobilization Forces), are prepared to lay down their arms for the first time to avoid a potential conflict with the US administration under President Donald Trump. Sources, including six local commanders from four major militia organizations, indicate that this move to de-escalate tensions follows private warnings issued by US officials to the Iraqi government since Trump took office in January. The US conveyed to Baghdad that these groups could face airstrikes if they are not disbanded.

Izzat al-Shahbandar, a Shiite politician close to the Iraqi government, told Reuters that discussions between Prime Minister Mohammed Shia al-Sudani and militia leaders are “very advanced,” and the groups are responding positively to the US call for disarmament. “These groups are not being stubborn. They are aware that they could be targets of US attacks,” said Shahbandar.

The report stated that the six commanders who spoke to Reuters on condition of anonymity are from the following groups: Kata’ib Hezbollah (Hezbollah Brigades), Harakat Hezbollah al-Nujaba (Movement of the Noble Ones), Kata’ib Sayyid al-Shuhada (Sayyid al-Shuhada Brigades), and Ansar Allah al-Awfiya (Supporters of God’s Loyalists). A commander from Kata’ib Hezbollah, one of the most influential organizations, allegedly said, “Trump is ready to take this war to a worse point. We want to prevent this disaster.”

According to the report, militia commanders stated that the Iranian Revolutionary Guard Corps (IRGC) has authorized them to take all necessary steps to avoid a devastating conflict with the US and Israel.

These organizations, part of the Iraqi Islamic Resistance, possess approximately 50,000 fighters and long-range missiles. Citing two security officials, Reuters reports that the Iraqi Islamic Resistance is “a key pillar of Iran’s regional proxy network.”

These organizations have claimed responsibility for dozens of missile and drone attacks targeting US interests in Israel and Syria since October 7.

Farhad Alaeddin, Prime Minister Sudani’s foreign policy advisor, told Reuters that the government aims to bring all weapons under state control and intends to achieve this “through constructive dialogue with various national actors.”

Two security officials close to the Sudani government reported that the prime minister is insistent on disarming all militias affiliated with the Iranian Revolutionary Guard Corps or the Quds Force.

According to officials and commanders, since mid-January, some groups have largely evacuated their headquarters and reduced their presence in major cities such as Mosul and Anbar, fearing airstrikes. It was also noted that many commanders have increased security measures during this time, changing their cell phones, vehicles, and residences more frequently.

A US official, speaking on condition of anonymity, stated that there have been instances in the past where militias have ceased attacks due to US pressure, but doubts remain about whether any disarmament will be long-term.

Shahbandar noted that a final agreement with the militia organizations has not yet been reached, and the disarmament mechanism is still under discussion. Options such as transforming the militias into political parties or integrating them into the Iraqi army are being considered.

Reuters included the following assessments in the report:

While the fate of any disarmament process remains uncertain, the discussions still indicate that the militias are preparing for the first time to yield to long-standing Western pressure.

This shift coincides with a fragile period for the “Axis of Resistance” that Tehran has built over decades. Iran’s regional proxy forces have been significantly impacted by the war that began after Hamas’s attack on Israel on October 7, 2023. Hamas and Hezbollah in Lebanon have been subjected to heavy Israeli attacks, and the Houthis in Yemen have been targeted by US air operations. The decline of Syrian leader Bashar al-Assad has also weakened Tehran’s influence.

Iraq is trying to balance its policies regarding militias with both Washington and Tehran. These groups were formed with Iran’s financial and military support after the overthrow of Saddam Hussein in 2003 and have grown into a force capable of rivaling the national army over time.

According to two government officials and two security sources, US Secretary of Defense Lloyd Austin, shortly after the start of American attacks on the Houthis, requested in a phone call with Prime Minister Sudani on March 16 that he prevent the militias from launching retaliatory attacks on Israel and US bases in the region in support of their allies.

Since the start of the Gaza war, Iraq-based militias have carried out dozens of drone and rocket attacks against Israel in solidarity with Hamas and killed three US soldiers in a drone operation near the Syrian border in Jordan last year.

Sudani’s former advisor, Ibrahim al-Sumaidaie, stated on state television, “The US has long wanted these militias to be disbanded, but this time Washington may not accept ‘no’ for an answer. If we do not comply voluntarily, it may be imposed on us from the outside and by force.”

In Israel, as part of the “Qatargate” scandal, Prime Minister Benjamin Netanyahu’s advisors, Jonatan Urich and Eli Feldstein, who were taken into custody, were placed under house arrest until April 22 by the Magistrate Court where they were brought. The court forbade the two from communicating with anyone related to the case, including Netanyahu, for 60 days during the investigation. Additionally, a travel ban was imposed for the next 80 days.

The Israeli police requested the court to extend Urich and Feldstein’s detention period for seven more days, citing the need to deepen the investigation. However, the court limited this request to only a 24-hour extension. Later, it decided on house arrest instead of detention.

In the file dubbed “Qatargate,” the two advisors are accused of working for a pro-Qatar lobby firm, communicating with a foreign agent, and spreading messages favorable to Qatar to journalists in exchange for money. According to the allegations, these activities aimed to strengthen Qatar’s position as a mediator in the hostage negotiations between Israel and Hamas.

Additionally, Eli Feldstein is the main suspect in the scandal involving the leaking of a confidential document belonging to the Prime Minister’s Office. It is alleged that the document contained Hamas’s priorities and tactics in the hostage negotiations, and that the material was leaked to the Germany-based Bild newspaper.

The judge in the case, Menachem Mizrahi, made criticisms regarding the scope of the police interrogations. The judge stated that in recent interrogations, the police focused not only on the Qatar connections but also on the confidential document leak, and that this situation may have exceeded the boundaries of the investigation.

On the other hand, it was claimed that a dispute occurred between Feldstein and Urich, who were taken into joint interrogation yesterday for giving contradictory statements. It was stated that Urich, whom Feldstein accused of lying during the interrogation, started to cry.

Urich’s lawyer, Amit Hadad, claimed that his client experienced chest pain during the police interrogation, that the police did not take this seriously, and that Urich fainted and fell to the ground. The police representative denied this claim and said that Urich did not lose consciousness and was treated in the interrogation room by health teams before the ambulance arrived.

It was also stated that Zvika Klein, the Editor-in-Chief of The Jerusalem Post, who testified as a suspect and was placed under 5 days of house arrest, was interrogated again due to inconsistencies in his initial statement.