The European Union's top diplomat called on member nations to unite Wednesday and impose tariffs of around $166 million on imported goods from Israel -- as well as sanctions on Prime Minister Benjamin Netanyahu's supporters over the war in Gaza.

Kaja Kallas, the EU's high representative for Foreign Affairs and Security Policy, called for action against Israel's government over its alleged role in human rights abuses across Gaza, with the order specifically targeting high-ranking officials and supporters of the war.

"I want to be very clear. The aim is not to punish Israel. The aim is to improve the humanitarian situation in Gaza," Kallas told reporters in Brussels.

"That's why the proposals we are making are not really touching or affecting the people but putting pressure on the Israeli government to change course," she added.

Kallas said the increased sanctions would target Israel's National Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich, the two most vocal supporters of the war in Gaza would have repeatedly called on the eradication and removal of the Palestinian refugees living in the Strip.

Along with targeting Gvir and Smotrich, the EU proposal would also seek to levy sanctions against 10 Hamas leaders.

The sanctions against the officials would effectively freeze any of their European assets and ban travel within the EU.

If enough EU members agree, tariffs of around $166 million would be slapped on the 37% of Israel's total exports to the block, which stands as the Jewish state's largest trading partner at nearly $19 billion.

Officials with knowledge on the deal noted that Israeli arms exports to the EU would remain unaffected.

Israeli Foreign Minister Gideon Saar condemned the proposal, warning European Commission President Ursula Von der Leyen that the Jewish state would not be intimidated by the economic threats.

"Pressure through sanctions will not work," Saar said in a letter to Von der Leyen. "The State of Israel is a proud sovereign nation, and we will not be bent through threats while Israel's security is at stake."

Von der Leyen, who had been a strong supporter of Israel, changed her stance last week to demand the EU pressure Israel over the humanitarian crisis in Gaza and the latest incursion into Gaza City.

It remains unclear if the EU would approve such measures as the 27-nation block has been split over how to handle the conflict, which is approaching its third year.

EU to hit Israel with tariffs, sanctions over Gaza war