EU to Hit Israel with Tariffs, Sanctions Over Gaza War
EU considers about $166 million in tariffs on Israel and targets senior officials and war supporters with sanctions as the bloc remains divided over how to respond to the Gaza crisis.
The European Union is poised to impose about $166 million in tariffs on imported goods from Israel and to sanction senior Israeli officials and supporters of the Gaza war, EU officials disclosed Wednesday. The move, led by Kaja Kallas, the EU’s high representative for foreign affairs and security policy, would target roughly 37% of Israel’s exports to the bloc and aims to pressure the Israeli government to alter its course amid the Gaza crisis. The proposed measures would also extend to 10 Hamas leaders, though Israeli arms exports to the EU would remain unaffected if the plan proceeds.
That package would include asset freezes and travel bans for those named, including national security figures and other high-profile supporters of the war. The bloc’s 27 members would need to reach a consensus for such sanctions and tariffs to take effect, a process that has already exposed significant divisions within the union as it grapples with how best to respond to the ongoing conflict in Gaza.
"I want to be very clear. The aim is not to punish Israel. The aim is to improve the humanitarian situation in Gaza," Kallas told reporters in Brussels as she outlined the proposals. She emphasized that the penalties are designed to pressure the Israeli government, not ordinary Israelis, to change course.
The proposed measures come as Israel has launched a broad incursion against Gaza City in an effort to dismantle Hamas in an area sheltering hundreds of thousands of refugees. The scale of the fighting has amplified a worsening humanitarian crisis in Gaza, with aid agencies warning of a dire situation as civilians bear the brunt of the conflict.
In parallel with the sanctions plan, the EU proposal would sanction 10 Hamas leaders, effectively freezing any European assets and banning travel within the bloc for those listed. The 37% of Israeli exports to the EU affected by the tariffs would represent a significant portion of Israel’s trade with its largest economic partner, though officials stressed that Israeli arms exports to the EU would not be touched by these measures.
Israeli Foreign Minister Gideon Saar condemned the proposal, warning that Israel would not be intimidated by economic threats. In a letter to European Commission President Ursula von der Leyen, Saar argued that pressure through sanctions would not work and that Israel remains a sovereign nation committed to its security.
Von der Leyen, who had previously been a staunch supporter of Israel, shifted her stance last week to urge EU pressure over the humanitarian crisis in Gaza and the latest incursion into Gaza City. It is not yet clear whether the 27-nation bloc will approve the measures, as the alliance remains split on how forcefully to respond to the conflict that has stretched into its third year.
The question of whether the bloc can reach consensus reflects broader tensions within Europe over how to balance diplomatic support for Israel with concerns about civilian casualties in Gaza and the urgent need to address humanitarian needs. While the sanctions and tariffs would apply to the Israeli government and its strongest backers, officials stressed that ordinary Israelis would not be targeted as a result of the policy shift.
The broader context remains one of a protracted conflict with no immediate end in sight. The Gaza Strip’s humanitarian toll continues to mount as fighting intensifies and aid deliveries remain hampered by road closures and security concerns. As the EU weighs its next steps, policymakers acknowledge that any move will require careful diplomacy to avoid unintended repercussions for civilians and to maintain unity among member states while addressing the Gaza crisis.
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