Israel has announced the removal of all remaining tariffs on imports from the United States, effective immediately. This decision, directed by Prime Minister Benjamin Netanyahu and implemented by Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat, aims to strengthen economic ties with the U.S. and potentially reduce the cost of living in Israel.
The Prime Minister’s Office, Finance Ministry and Economy and Industry Ministry released a joint statement, saying:
“At the directive of Prime Minister Benjamin Netanyahu, Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat, Israel has cancelled all of the customs duties that have been levied until now on products from the US, Israel’s largest trading partner.
After the approval of the Knesset Finance Committee and the Economy and Industry Minister’s signature on the order, the amendment to the order regarding trade levies and protective measure will take effect and customs duties on all imports from the US will be cancelled.”
The U.S. and Israel have maintained a free trade agreement since 1985, resulting in approximately 99% of U.S. goods entering Israel tariff-free. The newly eliminated tariffs primarily affected a limited number of products, mainly in the food and agricultural sectors. In 2024, Israel’s exports to the U.S. totaled $17.3 billion, with services exports estimated at $16.7 billion.
Prime Minister Netanyahu emphasized that removing these tariffs aligns with his longstanding policy of opening Israel’s market to competition, diversifying the economy, and lowering living costs. He highlighted that this move not only benefits the Israeli economy and its citizens but also reinforces the special relationship between Israel and the United States.
Finance Minister Smotrich stated that eliminating tariffs on U.S. imports is a significant step in safeguarding Israel’s economy during a sensitive period and in strengthening economic ties with its most important ally.
Smotrich stated, “The current administration is a genuine opportunity to fashion a new strategic economic future for the countries by strengthening Israel’s central role as an economic partner. I ascribe great importance to deepening the economic cooperation, advancing innovation and strengthening the financial and commercial ties between the countries, as was recently declared by the US Treasury Department and the Israeli Finance Ministry. Lowering the customs duties will be good for the State of Israel and is in line with the Government’s policy on fighting the cost of living and will even increase competition in the food sector.”
Economy and Industry Minister Barkat added that this decision complements the longstanding trade relations between the two countries and will promote further economic cooperation, leading to reduced costs for imported products. He affirmed the commitment to continue opening new markets and creating economic opportunities that bolster Israel’s economy and its partnership with the United States while maintaining support for local production.
This policy change comes just before President Donald Trump’s planned announcement of reciprocal tariffs on U.S. trade partners, scheduled for April 2, referred to by the administration as “Liberation Day.” By removing these tariffs, Israel aims to preempt potential U.S. duties and demonstrate its commitment to free and fair trade with its largest trading partner.
