Brussels: In its toughest move yet to end the Gaza war, the European Commission today outlined plans to strip Israel of preferential trade and impose targeted sanctions on Israeli officials and settlers. The proposal, spearheaded by EU foreign policy chief Kaja Kallas, would revoke zero-tariff treatment on roughly 37 percent of the €15.9 billion in annual Israeli exports to the bloc, replacing it with World Trade Organization duties ranging from 8 percent to 40 percent.
Under the plan, tariffs totalling about €230 million would hit key Israeli goods if at least 15 member states representing 65 percent of the EU population back the measure in a qualified-majority vote. “We’re not suspending trade with Israel, only its trade preferences,” said a senior Commission official, stressing the step aims to alleviate Gaza’s humanitarian crisis rather than punish Israel.
In parallel, Brussels wants to freeze any European assets and ban travel across the EU for 10 Hamas leaders, violent settlers and two far-right ministers in Prime Minister Benjamin Netanyahu’s cabinet, National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich. The sanctions package also pauses most bilateral funding to Israel, except for civil-society projects and Holocaust remembrance.
Commission President Ursula von der Leyen, invoking Article 2 of the EU-Israel Association Agreement, argued that Israel’s military campaign and settlement expansion breach the accord’s core human-rights obligations. “Daily attacks on civilians in Gaza cannot go unanswered,” she said, calling for an immediate ceasefire, unimpeded aid access and the release of all hostages.
Some EU capitals remain hesitant. Berlin and Paris have yet to signal full support, concerned about diplomatic fallout and the impact on European businesses. Nonetheless, a growing chorus in the European Parliament and humanitarian groups is urging swift approval, citing the mounting civilian death toll in Gaza.
If adopted, the measures would mark a historic shift in EU-Israel relations, cutting into a trade partnership that saw €42.6 billion in goods exchanged in 2024. Brussels has also hinted at further steps, including an EU-wide arms embargo and tighter export controls on dual-use technologies.
Next week, EU ambassadors will meet to discuss the Commission’s text ahead of a formal vote in the Council. Should the sanctions and tariffs win approval, they could take effect before the European Council summit in October, signalling a new chapter in Europe’s response to the Middle East conflict.
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