Israel threatens retaliation as EU proposes trade restrictions over Gaza war

Israel warned the European Commission on September 17 that any measures targeting the country “will be answered accordingly,” after Brussels proposed suspending certain trade privileges and imposing sanctions in response to the ongoing war in Gaza.

Foreign Minister Gideon Sa’ar criticised the European Commission’s actions as “morally and politically distorted,” writing on X that he hopes the proposals “will not be adopted as has been the case so far,” Caliber.Az reports.

The recommendations of the college of Commissioners led by President von der Leyen are morally and politically distorted, and it is to be hoped that they will not be adopted as has been the case so far.
Moves against Israel will harm Europe’s own interests.
Israel will continue…

— Gideon Sa'ar | גדעון סער (@gidonsaar) September 17, 2025

He added that “moves against Israel will harm Europe’s own interests” and stressed that Israel “will continue to struggle, with the help of its friends in Europe, against attempts to harm it while it is in the midst of an existential war.”

The European Commission, led by President Ursula von der Leyen, presented its proposals to the Council earlier in the day to suspend certain trade-related provisions of the EU-Israel Association Agreement, targeting roughly €5.8 billion of Israeli exports. 

The Commission also proposed sanctions on Hamas, “extremist” Israeli ministers, and “violent” settlers, while putting bilateral support to Israel on hold—except for assistance to civil society and Yad Vashem. 

The measures would affect future allocations between 2025 and 2027, as well as ongoing institutional cooperation projects.

Von der Leyen said the EU’s actions are driven by “the horrific events taking place in Gaza on a daily basis,” calling for “an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas.” 

She emphasised that the EU remains “the biggest donor of humanitarian aid and an unwavering champion of the two-state solution,” while clarifying that sanctions would not affect engagement with Israeli civil society or Yad Vashem.

EU foreign policy chief Kaja Kallas added that the sanctions package targets two Israeli ministers—National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich—along with “violent” settlers and 10 senior members of Hamas.

The EU is Israel’s largest trading partner, accounting for 32% of its total trade in goods in 2024, valued at €42.6 billion. The Commission’s proposed suspension of trade concessions still requires unanimous approval from EU member states to take effect.

Israel’s nearly two-year offensive in Gaza and the worsening humanitarian crisis have increased political pressure on European leaders, prompting the Commission’s latest actions.

By Sabina Mammadli