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US law forbids US government contractors from complying with foreign state sanctions and boycotts against Israel.

For example Lockheed Martin is not allowed to comply with Qatari and Turkish demands to boycott and sanction Israel.

Private US citizens and companies who are not government contractors can boycott Israel as much as they want.

You are probably confusing the law with some weird Texas law that also forbids government workers from boycotting Israel.

The EU has similar laws forbidding EU companies with complying with US/Israeli sanctions against Iran.

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In May 2017, Wyden co-sponsored the Israel Anti-Boycott Act, Senate Bill 720, which made it a federal crime, punishable by a maximum sentence of 20 years imprisonment,[88] for Americans to encourage or participate in boycotts against Israel and Israeli settlements in the occupied Palestinian territories if protesting actions by the Israeli government. The bill would make it legal for U.S. states to refuse to do business with contractors that engage in boycotts against Israel.[89]

https://en.wikipedia.org/wiki/Ron_Wyden#Israel