JERUSALEM (VINnews) — President Yitzchak Herzog on Tuesday warned Britain against imposing a ban on trade in goods produced in Israeli settlements in Judea and Samaria, calling the expected move a “grave miscalculation” and accusing foreign governments considering similar measures of interfering in Israel’s upcoming election.

Speaking at a Horizon Europe awards ceremony at the President’s Residence in Jerusalem, Herzog addressed Britain’s expected announcement later Tuesday of new restrictions targeting goods produced in Israeli settlements.

“Later today, we expect to see headlines announcing certain British trade sanctions on Israeli settlements in Judea and Samaria,” Herzog said. “If this happens, and other nations may join, I believe it will prove to be a grave miscalculation, a decision that will fall on the wrong side of history.”

Britain’s foreign secretary, Ed Miliband, is expected to formally announce the measures in Parliament. The British government has framed the policy as part of a broader effort to prevent Israeli settlement expansion from undermining the possibility of a future two-state solution.

The move represents a significant escalation in Britain’s policy toward Israeli settlements. London already denies preferential tariff treatment to goods produced in settlements and has advised British companies against economic and financial activity there. The government said last week that it was considering further concrete measures against settlement expansion.

Herzog argued that the timing of the British move was particularly problematic, coming ahead of Israel’s October 27 election. “In the current context, it would be a gross interference in the democratic elections of a sovereign nation. And it will serve no one,” he said.

European governments have increasingly criticized Israeli settlement policy, particularly plans to advance construction in the E1 area east of Jerusalem. Critics say the project could disrupt territorial continuity between northern and southern parts of Judea and Samaria and make the establishment of a contiguous Palestinian state more difficult.

Britain has explicitly linked its new policy to concerns over E1 and has described settlement expansion as a threat to the viability of a two-state solution.

The British government maintains that its measures are directed at settlement activity rather than at Israel as a whole. Reuters reported that the economic impact of the trade ban is expected to be limited, since settlement-produced goods represent only a small portion of the roughly £6 billion in annual trade between Britain and Israel.

Herzog also rejected the argument that sanctions would primarily pressure Israeli policymakers, warning that they could instead harm Palestinians whose livelihoods are connected to Israeli businesses and the local economy.

“It will directly harm – unfortunately – Palestinians, robbing them of business and employment,” he said. “And, ultimately, it will undermine the interests and national security of freedom-loving nations.”

His comments echo concerns raised by some Israeli and British Jewish organizations, which have warned that economic restrictions could damage cooperation between Israelis and Palestinians and potentially hurt Palestinian workers and businesses.

Britain’s Chief Rabbi Ephraim Mirvis has also criticized the planned measures as potentially “counterproductive,” warning that they could harm prospects for peace and disproportionately affect British Jews because of their close religious, family, charitable and educational ties to Israel.

The expected British announcement has already drawn strong criticism from Jerusalem. An Israeli official warned Tuesday that Israel would respond immediately if Britain imposed sanctions targeting settlements. Foreign Minister Gideon Sa’ar has also threatened reciprocal measures, while National Security Minister Itamar Ben-Gvir has called for Israel to respond by recognizing Argentina’s claim to the Falkland Islands.

U.S. Ambassador to Israel Mike Huckabee has likewise criticized the planned British measures, warning of possible repercussions for British entities that participate in what he described as discriminatory measures against Israel. The Trump administration is expected to oppose the British move.

The dispute comes as Britain seeks what Miliband has called a “comprehensive reset” of its policy toward Israel and the Palestinians. London recognized a Palestinian state last year and has increasingly focused its diplomatic policy on preserving the possibility of a two-state solution.

Herzog urged Britain and other governments considering sanctions to abandon the approach and return to diplomatic engagement. “Sanctions are not a solution. Dialogue is,” he said. “I say to all foreign governments: Stop! Step away from the dead-end of sanctions and boycotts. And turn toward constructive dialogue and toward cooperation.”