Ed Miliband has rejected warnings from the UK's chief rabbi that the government's sanctions against illegal Israeli settlements will make British Jews less safe, as he emphasised ministers can confront the actions of Benjamin Netanyahu's government while also fighting antisemitism.

The foreign secretary announced sweeping sanctions on trade with Israeli settlements in the West Bank on Tuesday, with the government taking the position that Israel's occupation of the Palestinian territory was unlawful.

The measures were coordinated with France, Canada and nine other countries that were also introducing sanctions on Israel over the increasing expansion of settlements, which the UK government says is threatening the future of a Palestinian state.

In a joint statement, leaders including Andy Burnham, Emmanuel Macron and Mark Carney said: "The time has come to take further action to uphold our commitment to protect the two-state solution, our interests and to stand up for our values, before it is too late."

The chief rabbi, Sir Ephraim Mirvis, called the UK sanctions a "dark day for British Jews" and said they could embolden people who "use hatred as a weapon against Jews".

Milliband, who describes himself as a "proud British Jew", said he did not agree with Mirvis. Asked on BBC Radio 4's Today programme whether he was saying the chief rabbi was wrong, Miliband replied: "Yes, I am saying I don't agree with the chief rabbi, somebody over whom I have great respect."

He added: "I just want to be very, very clear. As I said it in my statement yesterday, anyone who holds British Jews, or indeed Jews around the world, responsible for the actions of the Israeli government is engaging in antisemitism, pure and simple.

"And it must be possible to stand up in our society for British values of freedom, dignity, and against oppression and injustice, and do so as I believe I did yesterday in a way that calls out antisemitism."

The foreign secretary was pressed on the chief rabbi's fear that British Jews could feel less safe as a result of the sanctions and was challenged by the BBC presenter, Justin Webb, who suggested Mirvis's claim could mean less to Miliband because he did not attend synagogue.

"No, I don't agree with that," said Miliband, adding: "Antisemitism is a scourge and an evil … I want Jews, I want people of all faiths and none to feel safe in our country."

Tuesday's sanctions announcement also prompted a swift backlash from Israel, which ordered the closure of the British consulate in Jerusalem and banned 12 British MPs and activists from entering Israel.

Washington's ambassador to Israel, Mike Huckabee, threatened that the US could take retaliatory action over trade, but the US secretary of state, Marco Rubio, said the US would "obviously" not follow the UK government's actions but did not want to see the West Bank destabilised.

Miliband told Sky News he would "let our American friends speak for themselves" but insisted the international community had been "quite frustrated to put it mildly, with some of the actions of the Israeli government".

The foreign secretary said he regretted what the Israeli government had announced but was "proud of what we did yesterday and it was the right thing to do".

Miliband accepted the closure of the British consulate in Jerusalem would be "damaging" but said the government had "weighed up the costs and benefits in advance if this".

The government is set to enact:

• An import ban on goods from illegal settlements in the occupied territories and a new ban for arms licences and other exports that "materially contribute to the occupation".

• A comprehensive sanctions regime against providing services such as construction or financing for Israeli settlements and a ban on advertising them in the UK.

• Personal sanctions against the main individuals accused of promoting settler violence.

• A new ban for arms licences and other exports that "materially contribute to the occupation".

Miliband made an impassioned statement in the Commons on Tuesday, recounting the horrific tales he had heard from Palestinians in the West Bank, whose homes had been destroyed, and doctors in Gaza who saw children dying while waiting for treatment.

The prime minister, Andy Burnham, said the sanctions were "the right thing to do" and emphasised they were aimed "not at the Israeli people". Burnham is due to face MPs over this issue at prime minister's questions.