Tel Aviv Markets Sink Following Trump Tariffs and Global Sell-Off
Stocks on the Tel Aviv Stock Exchange plunged Sunday as investors reacted to a sweeping new US trade policy and a global market downturn sparked by retaliatory tariffs from China. President Donald Trump announced a 17% tariff on Israeli imports, arguing that Israeli trade practices—including currency manipulation and market barriers—have created an uneven playing field. The announcement triggered a wave of selling in both Israeli and international markets.
The benchmark TA-125 and TA-35 indices each fell around 4%. The TA-90 index, tracking smaller high-cap companies, dropped nearly 4.5%, while the Insurance and Financial Services index declined 4.6%. Dual-listed technology and semiconductor firms were among the hardest hit, with Tower Semiconductor down nearly 12%, Nova down 6.5%, and Camtek falling 6.2%. Major banks Leumi and Hapoalim dropped more than 4.5% each. Teva Pharmaceuticals fell 6.6%, and oil-related companies such as Navitas and Delek Group also posted sharp losses.
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The downturn in Tel Aviv followed steep declines on Wall Street Friday, where the S&P 500 and Dow Jones fell nearly 6% and 5.5%, respectively, after China imposed a 34% tariff on US goods in response to President Trump’s policy.
“The industry expresses deep concern following the president’s decision,” said the Manufacturers Association of Israel. “This could harm jobs and reduce activity in the American market.”
Tel Aviv Stock Exchange executive Yaniv Pagot urged calm, saying the impact on local companies might be limited, and that “in the long term the markets will recover.”
