America’s overall population exceeds 333 million, almost 35 times greater than Israel’s head count of some 9.7 million in 2022.
The United States is also the world’s number two exporter, greatly outpacing Israel’s export sales which ranked twenty-seventh.
Applying an inter-country lens, America is the number one supplier of exported products to Israel accounting for a third of Israeli spending on exports. On the other hand, Israel places as the 27th-biggest buyer of US exported goods generating just 0.7% of America’s global imports.
Despite these size disadvantages, Israel has enjoyed billion-dollar surpluses from trading with America. Israeli exports of unmounted diamonds, medicines, medical, dental and veterinarian equipment, and mobile phones are key reasons for overall Israeli competitive advantage at America’s expense.
This analysis will present key statistics focusing on United States’ exports to, imports from, and trade balances with Israel by focusing on top products.
We start the analysis with a performance comparison of Israel’s currency against the United States’ dollar.
Competitive Currency Scorecard
Israel’s official currency, the Israeli shekel, appreciated by an average 6.4% measured against the US dollar over the 5-year period from 2018 to 2022.
In contrast, the Israeli shekel depreciated by an average -4% compared to the US dollar starting from 2021.
Israel’s currency weakening since 2021 made America’s export sales to Israel more expensive. In contrast, US importers enjoyed more bang for their buck buying products imported from Israel.
US Top Exports to Israeli Importers
The United States increased its export sales to Israel to US$14.2 billion in 2022, gaining 10.7% compared to 2021.
The list below highlights the most valuable products that American exporters sold to buyers in Israel.
- Unmounted diamonds: US$3.8 billion (up 29.6% from 2021)
- Electronic integrated circuits, parts: $1.3 billion (down -14.3%)
- Cars: $430.4 million (up 63.1%)
- Computers: $339.5 million (up 23.1%)
- Ammunition, projectiles including bombs and missiles: $339 million (up 32.5%)
- Mobile phones: $251.6 million (up 26.1%)
- Ethylene polymers: $250.2 million (up 76.2%)
- Aircraft or spacecraft parts: $234.9 million (2021 data unavailable)
- Semiconductor devices including diodes, transistors: $214.4 million (down -8.1%)
- Refined petroleum oils: $203.2 million (up 10.6%)
- Medical, dental or veterinarian equipment: $195.2 million (up 13.3%)
- Turbojets: $193.7 million (up 1.9%)
- Photographic plates, film: $189.1 million (down -10.7%)
- Medications: $149.7 million (up 20.2%)
- Semiconductor-making machinery: $144.2 million (down -47.5%)
The above 15 products represent 57.6% of America’s overall export sales to Israel.
Well over one-quarter (29.6%) of US exports to Israel are unmounted and unset diamonds.
Otherwise, the top US exports to Israel are highly diversified.
The fastest-growing top exports sold by America to customers in Israel were ethylene polymers (up 76.2% from 2021), cars (up 63.1%), ammunition and projectiles including bombs and missiles (up 32.5%), unmounted diamonds (up 29.6%), mobile phones (up 26.1%), then computers (up 23.1%).
Top US Imports from Israeli Exporters
The total value of products imported from Israel cost the United States a total US$21.9 billion, increasing by 15.1% from 2021 to 2022.
Below, you will find the leading products from Israel on which America’s importers spent the most in 2022. The products are listed in descending order starting with the goods from Israel that attracted the highest amounts of spending by US importers.
- Unmounted diamonds: US$6.3 billion (up 24.3% from 2021)
- Electronic integrated circuits, parts: $1.2 billion (up 117.6%)
- Medications: $1 billion (down -30.6%)
- Mobile phones: $745.9 million (up 33.5%)
- Semiconductor devices including diodes, transistors: $482.7 million (down -0.9%)
- Measuring or checking machines, instruments: $346.9 million (up 20.5%)
- Printing machinery: $282.1 million (down -8.6%)
- Aircraft or spacecraft parts: $276.4 million (2021 data unavailable)
- Plastic articles: $270.3 million (down -2.4%)
- Turbojets: $258.3 million (up 31.1%)
- Potassic fertilizers: $227 million (up 48.8%)
- Precious metal jewelry: $220.7 million (down -0.5%)
- Centrifuges, centrifuge dryers: $217.7 million (up 172%)
- Tool plates, sticks, tips: $196.3 million (up 10.5%)
- Plastic shipping or packaging materials, lids, caps: $188.8 million (up 35.9%)
The above products generated 56.1% of America’s overall spending on all products imported from Israel.
America’s imports from Israel are also diversified and overlap with the list of exported goods.
Recording triple-digit percentage gains in US spending on imports from Israel of centrifuges and centrifuge dryers (up 172% from 2021) and electronic integrated circuits (up 117.6%).
US Trade Balance Scorecard Versus Israel
America’s overall deficit trading with Israel swelled by 24.5% to -US$6.1 billion in 2022 compared to -$5.4 billion in red ink for 2022.
Listed below are the products that generated the severest trade deficits for America to Israel’s benefit.
- Unmounted diamonds: -US$2.5 billion (up 16.9% from 2021)
- Medications: -$860 million (down -35.3%)
- Medical, dental or veterinarian equipment: -$823.9 million (up 10.3%)
- Mobile phones: -$494.3 million (up 37.5%)
- Printing machinery: -$216.3 million (down -15.5%)
- Semiconductor devices including diodes, transistors: -$268.3 million (up 5.8%)
- Plastic articles: -$241.1 million (down -2.9%)
- Measuring or checking machines, instruments: -$268.2 million (up 22.1%)
- Precious metal jewelry: -$161.7 million (down -3.5%)
- Potassic fertilizers: -$226.9 million (up 48.7%)
- Plates, film, foil of non-cellular plastics: -$154.4 million (up 2%)
- Tool plates, sticks, tips: -$167.4 million (up 11.1%)
- Plastic shipping or packaging materials, lids, caps: -$167.2 million (up 40.9%)
- Electrical transformers, static converters: -$106.4 million (down -10.1%)
- Phosphatic fertilizers: -$188.1 million (up 66.4%)
The fastest-expanding trade deficits for the United States versus its Israeli trade partners were for phosphatic fertilizers (up 66.4% from 2021), potassic fertilizers (up 48.7%), plastic shipping or packaging materials including lids and caps (up 40.9%), then mobile phones (up 37.5%).
The following commodities resulted in the greatest product surpluses for the United States resulting from its trade with Israel.
- Cars: US$430.3 million (up 63.1% from 2021)
- Ammunition, projectiles including bombs and missiles: $300.6 million (up 48.9%)
- Ethylene polymers: $239.8 million (up 89.4%)
- Photographic plates, film: $188.8 million (down -9.9%)
- Computers: $166 million (up 139.3%)
- Miscellaneous nuts: $139.1 million (down -3.5%)
- Trucks: $94.1 million (up 26.1%)
- Electronic circuit apparatus: $93.3 million (up 20.2%)
- Refined petroleum oils: $84.8 million (down -33.4%)
- Corn: $79.9 million (down -43.4%)
- Starch residues: $76.4 million (down -16.5%)
- Electric generating sets, rotary converters: $71.3 million (up 30.7%)
- Armoured fighting vehicles including tanks: $66.8 million (down -18.9%)
- Chemicals for use in electronics: $64.5 million (up 25.1%)
- Vinyl chloride polymers: $57.8 million (up 28.1%)
The fastest-increasing product trade surpluses for America at the expense of Israel came from selling and buying computers (up 139.3% from 2021), ethylene polymers (up 89.4%), cars (up 63.1%), ammunition and projectiles including bombs and missiles (up 48.9%), then electric generating sets and rotary converters (up 30.7%).
See also Israel’s Top 10 Exports, Israel’s Top 10 Imports, Israel’s Top Trading Partners and Top US Trading Partners
Research Sources:
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average). Accessed on January 23, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on January 23, 2024
International Trade Centre, Trade Map. Accessed on January 23, 2024
Richest Country Reports, Key Statistics Powering Global Wealth. Accessed on January 23, 2024
Wikipedia, Demographics of Israel. Accessed on January 23, 2024
Wikipedia, Demographics of the United States. Accessed on January 23, 2024