‘Morally and Politically Distorted’: EU Commission Formally Proposes Sanctions, Partial Trade Suspension Against Israel

Latest Developments

Tariffs, Partial Trade Suspension, and Sanctions: European Commission President Ursula von der Leyen formally proposed punitive economic measures against Israel as the IDF continued its ground offensive in Gaza City on September 17. If approved, the package would include tariffs on over one-third of Israeli goods exported to Europe, the suspension of some trade-related elements of the European Union’s Association Agreement with Israel, and sanctions against two Israeli ministers. EU officials stated that the tariffs could impact $6.88 billion of Israel’s $18.8 billion worth of exports to the 27-member bloc, resulting in an estimated $269 million in additional duties paid by Israel annually. “The horrific events taking place in Gaza on a daily basis must stop,” said von der Leyen, adding that, “There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas.”
Majority Support Needed to Approve Motions: The proposed sanctions would need widespread support from EU member states, who continue to be sharply divided over Israel. Ireland, Spain, Denmark, Sweden, and the Netherlands have backed the suspension of the European Union’s free trade pact with Israel, a motion that requires a qualified majority — or 15 out of 27 EU members — and has historically been opposed by Germany, Hungary, and Czechia. For sanctions against individuals, unanimous support is needed, an outcome that is not guaranteed after Prague and Budapest blocked previously proposed measures against Israelis living in the West Bank in May 2025.
Germany Not Sold on Proposal: A German government spokesperson said that no decision had been made on whether to back the Commission’s proposal, insisting that Germany wants to keep diplomatic channels of communication with Israel open. Meanwhile, Israeli Foreign Minister Gideon Sa’ar called the proposed sanctions “morally and politically distorted,” and threatened that, “Steps against Israel will be answered accordingly. Moves against Israel will harm Europe’s own interests.”

FDD Expert Response

“When Yahya Sinwar launched the October 7 atrocities against Israel, he hoped the scenes of slaughter would inspire Muslims worldwide to rise up and attack Israel. Instead, the European Commission has answered the call, proposing to throw its economic weight against Israel. If European powers are serious about helping Palestinians and preserving Israeli security, they should focus their efforts on dismantling Hamas rather than preventing Israel from doing so.” — David May, Research Manager and Senior Research Analyst

“Fighting back tears, German Chancellor Friedrich Merz declared war on all forms of antisemitism at the opening of a synagogue in Munich earlier this week. The Chancellor must nevertheless understand that support for Israel is the ultimate test of his pledge; if the EU’s most powerful state folds in the face of these proposals emanating from Brussels, then it will have effectively abandoned a solemn and historic commitment.” — Ben Cohen, Senior Analyst and Rapid Response Director