Israel and Vietnam have finalized a new free trade agreement set to begin in November, aimed at easing trade in electronics, vehicles, medical devices, fresh produce, and food products.

Israeli Economy Minister Nir Barkat hailed the deal as a step forward for Israel’s economy, enhancing cooperation with global markets.

Trade between Israel and Vietnam reached $1.3 billion in 2023, a 21% increase from the previous year.

Signed in July, the agreement reduces tariffs and removes trade barriers, facilitating Israeli exports to Vietnam.

Former President Donald Trump has proposed tariffs of up to 100% on Mexican imports to pressure Mexico to close its U.S. border, escalating his protectionist agenda for the 2024 presidential campaign.

Speaking in North Carolina, Trump said tariffs would start at 25% and could rise to 100% if Mexico did not halt migration, despite having previously negotiated a free trade deal with Mexico and Canada.

Economists warn that the tariffs, amounting to a multitrillion-dollar tax, could lead to steep price increases for U.S. consumers, especially on goods like food.

Trump’s tariff proposals also extend globally, with plans for up to 20% import duties on all countries.

Critics argue these policies could harm both the U.S. economy and its geopolitical relationships, potentially costing American households over $2,600 annually and reducing market stability.

After the election, Rick Muskat of Deer Stags acted quickly to increase shoe production in China to stockpile inventory in anticipation of potential U.S. tariffs imposed by President-elect Donald Trump, with the aim of avoiding added costs by securing additional production. Many U.S. businesses are responding similarly, with some accelerating plans to move production out of China. Trump’s proposed tariffs of 10–60% on Chinese goods are causing companies to reconsider their supply chains, though relocating production is complex. Leaders like Steve Madden’s Edward Rosenfeld are diversifying sources, shifting to countries like Vietnam and Brazil. However, some, like toy maker Basic Fun, say tariffs will severely impact operations, as shifting production out of China poses logistical and cost challenges. Industry groups warn that tariffs could increase consumer prices. Meanwhile, some manufacturers, such as those in U.S.-based solar, welcome the tariffs, seeing them as a chance to strengthen domestic production. Nonetheless, companies like Deer Stags see few viable alternatives outside of China due to the price sensitivity of their products.