Israel has decided to eliminate all remaining tariffs on goods coming from the United States, just ahead of anticipated reciprocal tariffs from the Trump administration against various trading partners worldwide.
The move is pending final approval from Economy Minister Nir Barkat and the parliament’s finance committee, with both expected to support it. Once approved, the cancellation of tariffs on all American imports will be fully enforced.
With the United States being Israel’s primary trading partner and closest ally, with a trade volume of $34 billion in 2024, this tariff removal signals a significant step towards boosting market competition, economic diversification, and cost-of-living reductions, as stated by Prime Minister Benjamin Netanyahu. Aside from the economic advantages, the decision is seen as a way to reinforce the strong alliance between Israel and the U.S.
The two nations have had a free trade agreement in place for four decades, resulting in nearly all U.S. products entering Israel duty-free. The finance ministry reports that tax collection from U.S. imports, notably in agriculture, amounts to around $11.3 million annually.
The Finance Minister noted that this cancellation is a significant step to safeguard the country during this important time while also strengthening ties with its most trusted ally.
