Trading Partner Portal: Israel
Exporting to America: Effects of new US tariff on Israel – opinion
The Jerusalem Post, August 13, 2025
Interview Series Featuring California’s Key Trading Partners – Featuring Shlomi Kofman, Consul General of Israel in San Francisco:
Similarities Foster Bilateral Partnerships, Advances in Health, Agriculture, Water
CalChamber, October 23, 2020
Trade Overview
Israel boasts a highly advanced market economy that consists of a rapidly growing high-tech sector that is supported by a strong venture capital industry. With only a population of 10.12 million, Israel had a gross domestic product (GDP) of $610.78 billion in 2025. World Bank
Israel has one of the largest diamond industries in the world and also possesses a substantive service sector. In addition, Israel also remains a world leader in telecommunications and software development. Its main exports include cut diamonds, high-technology equipment and agricultural products, particularly fruits and vegetables. Israel is highly dependent on foreign imports of coal, petroleum, food and production inputs, especially since access to natural resources are relatively scarce.
Tourism has become a large industry for Israel as a well sought out tourist destination for the country’s religious significance, historical sites and architecture, temperate climate, beaches and unique geography. Despite past security concerns with neighboring countries, Israel attracts millions of tourists annually.
U.S. – Israel Trade
In 2025, two-way goods trade between the U.S. and Israel was $34.45 billion, a drop from the previous years $36.98 billion. U.S. exports to Israel were over $13.71 billion, causing Israel to be the 30th largest export destination. Main U.S. exports to Israel included transportation equipment ($2.87 billion), computer and electronic products ($2.51 billion), chemicals ($1.71 billion), miscellaneous manufactured commodities ($1.58 billion), and fabricated metal products ($1.38 billion).
The U.S. imported $20.73 billion from Israel in 2025, with computer and electronic products making up $8.03 billion of the total. This was followed by chemicals ($3.86 billion), miscellaneous manufactures ($2.85 billion), goods returned ($1.30 million), and non-electrical machinery ($1.14 billion).
Services trade between the U.S. and Israel was roughly $19.82 billion in 2025 with services exports totaling $9.72 billion. Top services exported from the U.S. to Israel were other business services, travel, transport, financial services, and telecommunications, computer, & information services.
Imported services from Israel to the U.S. totaled $10.10 billion in the same year. Top imports were other business services, transport services, travel services, telecommunications, computer, & information services, and charges for intellectual property use.
Israel – California Trade
In 2025, California exported $1.41 billion in goods to Israel. Top exports included computer and electronic products ($445 million), miscellaneous manufactured commodities ($305 million), non-electrical machinery ($149 million), chemicals ($106 million), agriculture products ($98 million).
Imports from Israel to California totaled just over $2.00 billion in 2025, with computer and electronic products and miscellaneous manufactured commodities making up $1.35 billion of the total. This was followed by reimports ($134 million), miscellaneous manufactures ($132 million), non-electrical machinery ($100 million), and electrical equipment, appliances and components ($62 million). U.S. Department of Commerce
FDI – Israel
In 2025, total U.S. direct investment to Israel was documented at $59.7 billion. Foreign direct investment from Israel to the U.S. was roughly $13.4 billion. Israeli FDI in the U.S. supported 32,299 jobs and contributed $933 million to research and development. Israeli FDI also contributed $5.7 billion to expanding U.S. exports. The top industry sectors for Israeli FDI in the U.S. are software and IT services, energy, industrial equipment, medical devices, communications, and food and beverages. Select USA
In California, the 20th largest source of FDI through foreign-owned enterprises (FOEs) is Israel. In 2025, Israeli FOEs in California provided 7,875 jobs through 149 firms amounting to $1.02 billion in wages. The top jobs by sector are manufacturing, professional and business services, retail trade, wholesale trade, and information (World Trade Center Los Angeles FDI Report).
More Information and Articles
Energy Sector — Alon Oil is an Israeli Energy company which operates several refineries on the U.S. West Coast, including California. Alon markets energy products in Israel. In addition, Zion Oil, although Texas based primarily, is involved in oil exploration in Israel.
High Tech Sector — The Israeli high-tech industry has been developing and reaching new peaks each year, both in technological achievements and in sales. Intel Israel has been in operation since 1974, supporting five locations throughout the country. In addition, IBM also has several locations throughout Israel
According to the U.S.-Israel Business Initiative, Israel is an ever-growing partner for the United States in generating transformative innovation for American companies while creating high-skilled jobs in the US. Nearly half of the world’s top technology companies have bought start-ups or opened research and development centers in Israel. More than 300 foreign companies have established R&D centers in Israel with more on the way.
Silicon Valley to Silicon Wadi: California’s Economic Ties with Israel
Bay Area Economic Institute, October 2021
Israeli Cybersecurity, Fintech, and Enterprise Solutions Companies Lead Israeli Tech Companies 6-Month Record Breaking Fundraising Total of $10.5 billion
Atid EDI Ltd., June 10, 2021
Israeli Firefighters Land in San Francisco to Help Battle Wildfires
The Jewish News of Northern California, August 30, 2020
California Governor Jerry Brown signs anti-BDS bill into law
Newly approved legislation prevents companies that boycott or discriminate against any sovereign country from trading with the state.
Times of Israel, September 25, 2016
California and Israel Sign Pact to Strengthen Economic, Research Ties.
Governor’s Office of Edmund J. Brown, March 5, 2014
“Through this agreement, California and Israel will build on their respective strengths in research and technology to confront critical problems we both face, such as water scarcity, cybersecurity and climate change,” said Governor Brown.
Business Opportunities in Israel Portal
CalChamber Resources
- American Chamber of Commerce in Israel
- Israel Consul in California
- California – Israel Chamber of Commerce
- International Trade FAQs
- GO-Biz Stats: Israeli FDI in CA
Business
- U.S. Commercial Service Israel
- Embassy of Israel in Washington D.C.
- Federation of Israeli Chambers of Commerce
- Israel Ministry of Foreign Affairs
- Business Opportunities in Israel Portal
Cultural/Educational
- BIRD Foundation – Binational Industrial Research and Development Foundation
- BSF United States – Israel Binational Science Foundation
- BARD – Agricultural Research and Development Fund
- U.S.-Israel Science and Technology Foundation
- Birthright Israel for teens/young adults
- International Universities/Programs
- Sister Cities International