Israel’s economy braces for major hit after Turkish ban: Report

Türkiye's recent decision to halt all its trade relations with Israel is poised to impact Israeli consumers with sudden price hikes in a short period of time, as Tel Aviv, taken by "complete surprise," failed to devise alternative import measures, an Israeli media report has said.

Initially restricting exports to Israel for certain product categories on April 9, Ankara escalated to a complete halt of trade between the two nations by May 2, vowing to continue to impose the measures until the Israeli government allows the flow of humanitarian aid to the war-torn Gaza Strip.

Israeli news site Calcalist stated that the financial fallout following the Turkish ban will soon be felt in Israel, with the cessation of basic raw materials, leading to a rise in prices of essential goods and food, as well as an increase in housing prices.

Calcalist's report noted that Türkiye's decision to sever trade ties with Israel caught the country by surprise, as Israel had dismissed Ankara's earlier threats to ban goods as "empty" during the Gaza conflict.

Stating that securing alternative import sources requires time, the report pointed out that with the negotiation of new agreements, and even when achieved, the prices are likely to be significantly higher than those offered by Turkish suppliers.

"Israeli consumers, already grappling with a mounting cost of living, will bear the brunt of bridging these price disparities."

The report from Calcalist underscored the construction and automotive industries as particularly vulnerable to the boycott, with major automakers relying on Türkiye to export popular car models to Israel.

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