Israel could be hit with new tariffs and sanctions after the European Union’s governing body proposed the measures on Wednesday as a means to force the Jewish state to end its war with Hamas in Gaza.

The European Commission’s plan involves increased tariffs on roughly 37% of Israeli goods and hefty sanctions on two Israeli ministers, 10 Hamas leaders, and Israeli citizens. An EU official urged the bloc’s 27 member states to back the proposal.

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“We are proposing these measures not to punish Israel or Israel’s people, but to really try to pressure the Israeli government to change course and to end the human suffering in Gaza,” European Commission Vice-President Kaja Kallas said in Brussels, Belgium. “The war needs to end, the suffering must stop, and all hostages must be released.”

More broadly, the EU is considering a partial suspension of certain trade concessions in its agreement with Israel.

“Reflecting these principled commitments, and taking into account serious recent developments in the West Bank, we propose to suspend trade concessions with Israel, sanction extremist ministers and violent settlers, and put bilateral support to Israel on hold, without affecting our work with Israeli civil society or Yad Vashem,” European Commission President Ursula von der Leyen said in a statement.

The EU leader also reaffirmed her commitment to a two-state solution, which the United Nations General Assembly approved in a vote late last week. Israeli Prime Minister Benjamin Netanyahu has been opposed to the formal creation of a Palestinian state, as European countries backed the idea.

The leaders of France and the United Kingdom, among other nations, previously announced they would recognize a Palestinian state.

Irish politician Micheál Martin, whose country officially recognized a Palestinian state last year, supports the EU’s trade move against Israel.

“I strongly welcome the Commission’s decision today to propose suspension of parts of the EU’s Association Agreement with Israel,” he posted on X. “Ireland has long called for this action.”

Meanwhile, Israeli Foreign Affairs Minister Gideon Sa’ar denounced the EU’s proposal as “morally and politically distorted” in a message warning the EU to refrain from approving it. Otherwise, he said, Israel will retaliate.

ONLY ONE-THIRD OF PALESTINIANS HAVE LEFT GAZA CITY FOLLOWING EVACUATION ORDER: ISRAELI MILITARY

“Moves against Israel will harm Europe’s own interests,” he wrote on social media. “Israel will continue to struggle, with the help of its friends in Europe, against attempts to harm it while it is in the midst of an existential war. Steps against Israel will be answered accordingly, and we hope we will not be required to take them.”

The proposal for tariffs and sanctions represents a dramatic escalation of the EU’s response to Israel’s war in Gaza. It comes as the Israeli military proceeds with its new ground offensive in Gaza City, forcing thousands of Palestinians to flee.