Israel's fast-growing crypto industry could face fresh uncertainty as U.S. President Donald Trump refuses to remove newly imposed 17% tariffs on Israeli exports — even after Israeli Prime Minister Benjamin Netanyahu vowed to remove tariffs on American products in a high-profile trade concession.
At the beginning of April 2025, Netanyahu's government removed nearly all residual tariffs on goods from the U.S., a mostly symbolic move, given that, according to reports , 98% of all U.S. goods were already duty-free under the long-standing Israel-U.S. Trade Free Agreement.
Meanwhile, new tariff issues on Israeli exports to the U.S. have imposed high tariffs on exports, all while Israel has unilaterally gotten rid of all tariffs on imports from the U.S.
While digital assets are not subject to taxes, the broader crypto ecosystem in Israel, which includes startups, fintech infrastructure, and blockchain R&D, is highly integrated into international trade and investment flows.
Israeli hi-tech panic
Industry leaders say persistent tariffs could dampen investor appetite, delay U.S.-Israeli joint ventures, and spur operational changes.
"This is a worrying step that raises deep concerns among Israeli high-tech companies. High-tech is an industry built on cross-border technological collaborations, and the U.S. market is a key target for exports, investments, and joint business activity. The tariffs could harm the competitiveness of Israeli companies and slow down joint investments, particularly in critical fields such as cybersecurity, communications, and advanced components," Alon Ben-Zur, chair of the Israeli High-Tech Association, told the media .
Crypto firms face pressure from trade war
Interestingly, eToro, the Israeli company that deals with cryptocurrencies, postponed their IPO . Originally scheduled to start its investor roadshow shortly, eToro has postponed it indefinitely. Other companies delaying IPOs include StubHub, Klarna, and Medline, all citing unstable markets.
Further, Israeli crypto firms, many already incorporated in Delaware, might increasingly decide to shift their incorporation or production to the U.S. to ensure investor trust and access to the market. Hardware-linked ventures — such as crypto wallet makers or blockchain infrastructure providers — may see rising costs if their imports of components from Israel become tariff-bound.
According to Forbes , by 2024, over 100 startups in the country have prepared a cumulative funding of nearly $4.5 billion. Cryptocurrencies in Israel are expected to generate a revenue of approximately $242.6 million in 2025.
