A group of US lawmakers has warned that Ireland should face consequences if it proceeds with plans to ban imports from Israeli-occupied territories.
The call was made in a letter sent yesterday to US Treasury Secretary Scott Bessent, signed by 16 members of Congress and led by Republican Congresswoman Claudia Tenney of New York.
“We write to express our serious concerns regarding recent proposal by the Government of Ireland to boycott Israel and urge the Department to examine the implications of the proposal under U.S. law,” they said.
The letter refers to the Occupied Territories Bill (OTB), brought to Cabinet by Tánaiste and Foreign Affairs Minister Simon Harris in June, which seeks to ban goods and services from areas under Israeli administration, including Judea and Samaria, Gaza, parts of Jerusalem and the Golan Heights.
“This measure is part of a broader effort aligned with the global Boycott, Divestment, and Sanctions (BDS) movement,” the letter claimed, adding that it “creates legal uncertainty for US companies operating in Ireland.”
The letter specifically references Section 999 of the US Internal Revenue Code, also known as the Ribicoff Amendment, which prohibits US companies from participating in boycotts against countries friendly to the US unless sanctioned by the federal government.
Under this law, the Treasury maintains a list of countries considered to be engaged in such boycotts. If added, Ireland could face new tax reporting rules and compliance burdens for US firms operating within the country.
The Congress members urged Bessent to examine whether Ireland’s proposed legislation meets the legal threshold.
“If the criteria are met, Ireland should be added to the boycott list,” they wrote.
They argued that doing so would help ensure US businesses are “protected from unintended legal exposure” and would send a message that “efforts to economically isolate Israel will carry consequences.”
The request follows the publication of a pre-legislative scrutiny report by a cross-party Oireachtas committee last month, which “strongly” recommended expanding the ban to include services as well as goods.
Taoiseach Micheál Martin has said the bill is expected to be debated in the Dáil and Seanad in early autumn.
The Occupied Territories Bill, now titled the Israeli Settlements Prohibition of Importation of Goods Bill 2025, would make it an offence under the Customs Act to import goods from what the Irish Government describes as “occupied” regions.
If passed, it would mark one of the strongest legislative actions taken by an EU member state in relation to Israeli settlements, and has already drawn significant attention internationally.
Tánaiste Simon Harris, who introduced the legislation, has not yet commented on the US letter.
Under existing US regulations, countries placed on the boycott list are subject to restrictions and mandatory disclosures from American businesses engaging with them, often resulting in increased legal and administrative costs.
The Boycott, Divestment and Sanctions (BDS) movement referenced in the letter is an international campaign that seeks to pressure Israel over its policies in Palestinian territories. While the movement has received support in parts of Europe and among activist groups, it has been strongly opposed by both major US political parties.