US Tariff on Footwear from Israel

Israel exports specialty footwear to the United States, with the US-Israel Free Trade Agreement potentially providing lower rates for qualifying goods. The base total rate is 22.5%.

Rate structure: 12.5% MFN base rate + 10% Section 122 = 22.5%. However, the US-Israel FTA, in effect since 1985, eliminates or reduces tariffs on many product categories for qualifying goods. For footwear that meets FTA rules of origin, the effective rate may be just 10% (Section 122 only) or even 0% for some categories.

Before the SCOTUS ruling, Israel faced a 17% IEEPA tariff. The drop to 10% Section 122 saved 7 percentage points on the base rate.

Israeli footwear brands with US market presence include: Naot (comfort sandals and shoes, manufactured in Yavne), Teva (now globally distributed but originally Israeli), and various boutique and designer brands. Israel also exports footwear components and technology, particularly for medical/orthopedic footwear.

The US-Israel FTA is one of the oldest US free trade agreements. For footwear to qualify, it must be substantially manufactured in Israel. Products that are merely assembled in Israel from foreign-origin components may not qualify. Importers should work with customs brokers to determine FTA eligibility.

At the base 22.5% rate, Israeli footwear is at the same level as Vietnam, Indonesia, and other non-China, non-FTA sources. The FTA advantage potentially makes Israel more competitive for qualifying products.

Israel's footwear manufacturing sector is relatively small compared to Asian competitors, focusing on niche markets: comfort/orthopedic footwear, military and tactical boots, and premium sandals. Volume production is limited, making Israel most relevant for specialty and boutique footwear imports.