Turkish commerce officials announced on Thursday that it would halt all trade with Israel over the war in Gaza. Israeli officials estimate this move is meant to pressure Israel not to operate in Rafah.
Israel's Economy, Transportation and Foreign ministries are trying to understand the depth of the situation.
"Erdogan crossed a line and blocked ports for Israeli exports and imports. This is how a dictator behaves, trampling on the interests of the Turkish people, businessmen, and ignoring international trade agreements," said Foreign Minister Israel Katz. "I have instructed the Foreign Ministry Director-General to hold immediate discussions with all relevant parties to find alternative solutions for trade with Turkey. Israel has a strong economy and will emerge stronger from this. We win, and they lose."
Israel fears heavy damage to commerce
The cessation of all trade between Israel and Turkey could cause significant damage to industry and trade in Israel, since the volume of imports of raw materials and goods from Turkey amounts to about $5 billion a year. Aside from the embargo of construction materials, Turkey has halted the export of minerals, machinery, cars, energy products, rubber, plastic, health and agricultural products. At the same time, dozens of Israeli factories are expected to stop exporting to Turkey, amounting to $1.5 billion.
Turkey is currently one of Israel's major trading partners, and according to an Economy Ministry official, "there will be an immediate need to find companies and factories that will export goods and raw materials to Israel. Apparently, some of these will be imported from friendly countries like Germany, Britain, the Czech Republic, Hungary and Greece."
Israel's manufacturers criticize the government
On Thursday, the president of the Manufacturers Association of Israel, Ron Tomer, said: "Over a month ago, we asked the Finance and Economy ministries to respond to the threat and then implement a 100% tariff against Turkey to signal to Erdogan and the world that Israel will not take an embargo quietly. Beyond the show of weakness and loss of national pride, we have lost an opportunity to send a message to anyone seeking to boycott us, that we will not accept it, and every move against us will be punished in return.
"We need to impose 100% protective tariffs for three years on all imports from Turkey and to completely ban certain imports from there. This is the only way Erdogan will understand that he cannot play with us and that his move will bring a long-term response. This will also allow many local industries to invest and establish additional production bases in Israel to maintain industrial independence," said Tomer.
"It is also time to strengthen our industrial independence in the food and construction sectors. Israel should do its best to increase the volume of food and construction materials produced in Israel and be independent from Turkey," he added.
Shachar Turgeman, chair of the Committee for the Advancement of the Retail Sector in the Federation of Israeli Chambers of Commerce, said: "It is a shame that the Turkish authorities do not maintain the tradition of keeping political and economic matters separate. The main losers of Erdogan's actions are the Turkish traders and not the State of Israel. The Israeli economy is strong enough to find alternatives to imports from Turkey."
About a month ago, Turkey escalated its conflict with Israel, when the Turkish Trade Ministry announced restrictions on exports to Israel in 54 categories, including construction materials such as cement and steel products. Turkey announced that the trade restriction would remain in effect until Israel declared an immediate cease-fire in Gaza and allowed aid to be brought into Gaza undisturbed.
Since October 7, Erdogan has gradually been harming Israel-Turkey relations with hateful rhetoric, hosting the Hamas leadership in Turkey, and recently joining forces with South Africa's genocide allegations against Israel in the International Court of Justice.
Turks shouting 'Death to Israel'
During an event in parliament, Erdogan emphasized that there is no difference between Hamas and Turkish guerrilla organizations that operated in the Turkish War of Independence under the leadership of Mustafa Kemal Ataturk, the founder of modern Turkey. A propaganda film was screened showing actions taken by Turkey on behalf of the Palestinians, and the audience shouted "Death to Israel."