Tel Aviv Stocks Plummet Amid Trump Tariffs on China

Tel Aviv stocks suffered significant losses in early trading on Sunday, following a surge in global trade tensions after US President Donald Trump announced plans to impose 100% tariffs on Chinese imports. The TA-35 index fell nearly 2%, the TA-125 index dropped 1.9%, and the TA-90 index declined 1.7%. The technology sector was particularly hard hit, with its index falling around 2.5%.

This downturn reflects concerns about a potential global trade war and its impact on the Israeli economy, which is heavily reliant on technology and exports. Trump’s announcement came after China restricted exports of rare earth minerals used in advanced technology and military industries.

China’s Commerce Ministry responded harshly, accusing the US of “double standards” and stating that the tariffs have “caused significant damage to China’s interests” and “undermined bilateral economic and trade talks.” Economists predict that these tensions could lead to additional inflationary pressures in Israel, particularly given its dependence on technology and industrial imports, complicating efforts to control prices.