Israeli exports of products to the EU have fallen considerably in latest months, to NIS 36.8 billion shekels between January and August 2025 from NIS 40.8 billion within the corresponding interval of final 12 months, the Central Bureau of Statistics stories. In August 2025 itself, exports to the EU fell 25% to NIS 3.5 billion from NIS 4.7 billion in August 2024. What has triggered the dramatic change within the commerce steadiness with Europe? The reply is Eire.
Because the begin of 2025, Israeli exports to Eire have plunged over 50%. Eire’s most vital import merchandise from Israel is chips, that are primarily exported there from Israel by Intel. Furthermore, over the identical interval, there was a rise in Israeli chip exports to the US, and a rise in Israeli exports to Germany – Israel’s different vital export vacation spot in Europe. Nonetheless, these two weren’t adequate to offset Eire’s dramatic decline.
Improve in exports to Germany, lower to Cyprus
Exports to Eire because the starting of the 12 months have been lower from NIS 8.2 billion between January and August 2024 to solely NIS 3.9 billion within the corresponding interval in 2025. Though this dramatic drop is considerably offset, as talked about, by a rise of NIS 2.3 billion in exports to Germany throughout the identical interval, whole exports to the EU fell NIS 4 billion. That is additionally as a consequence of a fall of NIS 1 billion in exports to Cyprus over the identical interval, primarily chemical compounds.
Shift in chip exports in the direction of the US
The main Israeli export to Eire is chips, and in line with Central Bureau of Statistics information for July, chip exports to Eire have dropped dramatically: from $369 million in July 2024 to simply $40 million in July 2025, a fall of about 90%.
Nonetheless, chip exports to the US have jumped from $58 million in July 2024 to $265 million in July 2025. This can be a somewhat dramatic change, which suggests a shift in exports from Eire to the US, however whole chip exports are nonetheless in decline.
Total, in line with the figures, exports of “digital elements and boards” (primarily chips) have fallen 22% because the starting of 2025 in contrast with the identical interval final 12 months, from NIS 15.9 billion to NIS 12.4 billion.
The chip trade is led by Intel, which operates in Israel, Eire and the US, and has lower its workforce in latest months. It’s potential {that a} change in Intel’s operations and maybe a shift in exports from Eire to the US contributed to the decline, however the firm’s response couldn’t be obtained by the point of going to press.
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Some firms would favor to not commerce with Israel
Whereas sentiment in the direction of Israel in Europe is cooling, and quite a lot of nations resembling Eire and Spain have even demanded sanctions or the cancellation of agreements, no official steps have but been taken towards Israel.
In keeping with Dr. Emmanuel Navon of the Faculty of Political Science, Authorities and Worldwide Affairs at Tel Aviv College, “All commerce relations with Israel are carried out in Brussels. No EU member state can undertake an unbiased distinctive coverage in the direction of a 3rd nation.”
<Thus, commerce relations are carried out with the EU as an entire, which is Israel’s largest buying and selling accomplice. He provides, “The EU itself can impose restrictions resembling freezing packages and labeling merchandise manufactured throughout the Inexperienced Line, and two weeks in the past the EU Fee President Ursula von der Leyen spoke about freezing R&D agreements however that has not but been authorized.”
The EU requires consensus or a certified majority for many selections in it, so coverage adjustments in it are typically fairly gradual. Nonetheless, he says, “In nations with a comparatively hostile angle in the direction of Israel, resembling Eire, it’s potential that sure firms will desire to not commerce with Israel immediately, as a result of it’s a headache by way of public strain and on behalf of the BDS motion.”
However, an financial supply warns towards leaping to conclusions too rapidly: “It could be a technical matter, of fixing the classification or timing of an Intel buyer. Such issues have occurred previously, particularly in exports for which the customs of the receiving nation is accountable, and the customs price is decided by it. Nonetheless, that is an distinctive determine.”
The Ministry of Economic system and Trade stated that this isn’t a political matter however a enterprise one and that the decline in chip exports to Eire is rooted in adjustments happening within the world chip market.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on September 28, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
