The situation in Gaza has caused several divisions in the EU, with some Member States wanting to introduce measures against Israel while others resist. The Commission has mostly stayed out of the discussion until now. However, on Wednesday, 10 September, European Commission President Ursula von der Leyen proposed a partial suspension of the EU-Israel Agreement due to a push from several Member States.
Later, on Wednesday, 17 September, EU High Representative Kaja Kallas confirmed plans to hit Israel with downgraded trade ties and sanctions on top officials under the European Commission Proposal COM(2025) 890 – Suspension of parts of the EU-Israel Association Agreement.
The tariffs are planned to be imposed on €5.8 billion of imported goods, while the sanctions will be placed on two members of Israeli Prime Minister Benjamin Netanyahu’s government: National Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich. The planned measures will need to be approved by Member States.
These proposed tariff measures should target 37% of Israel’s total exports to the EU. The EU will also suspend €14 million in direct support for various Israeli projects.
EU Trade Commissioner, Maroš Šefčovič, provided remarks on the package of proposals. Šefčovič shared that the proposed suspension of core trade provisions would remove tariff preferences and subject Israeli imports to standard third-country duties. He shared that while regrettable, this step is deemed appropriate in light of the ongoing humanitarian crisis in Gaza. Additionally, he stated that alongside sanctions against Hamas, the EU calls for unimpeded humanitarian aid, the immediate release of hostages, an urgent ceasefire, real security for Israel, and dignity for Palestinians.
Several EU countries are also moving nationally on settlement-origin goods: Ireland has published a draft bill to ban such imports; Slovenia has already introduced a ban; Spain has announced a national ban within a wider package; and the Netherlands says it will introduce a ban “as soon as possible.” Belgium is also preparing its own ban.
Furthermore, on Monday, 15 September, Ireland’s Tánaiste and Minister for Foreign Affairs, Simon Harris, said he is seeking clarity from the European Commission on the timing and scope of planned EU sanctions on Israel and is pushing for the issue to be discussed at the next Foreign Affairs Council; he also signalled Dublin would move ahead with the Israeli Settlements Bill 2025 following pre-legislative scrutiny.
Separately, EU law already requires clear labelling of goods from Israeli settlements, and those goods cannot benefit from EU trade preferences.
The EU-Israel Association Agreement, in force since June 2000, provides the legal framework for the EU’s relations with Israel, covering areas such as political dialogue, economic cooperation, and the free movement of goods, services and capital.
