JERUSALEM, April 3 (Reuters) - Israeli Finance Minister

Bezalel Smotrich said on Thursday he was convening ministry

officials to formulate a course of action to protect Israel's

economy in the wake of President Donald Trump's decision to

impose U.S. import tariffs.

As part of a sweeping new tariff policy, Israeli goods

exports to the United States face a 17% tariff.

Smotrich said he would discuss with ministry officials,

after speaking with economic leaders, how to "analyse

opportunities and risks and formulate courses of action, both in

relation to President Trump and his team and regarding the

necessary steps to strengthen Israel's industry".

Trump's move came after Israel on Tuesday cancelled its

remaining tariffs on U.S. imports.

Israel and the U.S. signed a free trade agreement 40 years

ago and around 98% of goods from the U.S. are now tax-free. The

finance ministry noted that tariff collection from U.S. imports

- mainly in the agricultural sector - stands at about 42 million

shekels ($11.3 million) a year.

Ron Tomer, president of Israel's Manufacturers' Association,

said the tariffs could harm Israel's economic stability, deter

foreign investments, weaken the competitiveness of Israeli

companies in the U.S. market, and set back trade and investment

relations between the countries.

"We hope and believe that the decision will be short-lived,

and we will work with the Ministries of Finance and Economy to

reverse it," Tomer said.

The association said it would work on formulating strategies

to cope with the new situation and seek new export markets, and

called for continued intensive negotiations between Israel and

the U.S. to bring about a change in the decision or at least

reduce its scope.

($1 = 3.7106 shekels)