On Tuesday, Israel announced its canceling all tariffs being imposed on U.S. products.
Israeli Prime Minister Benjamin Netanyahu reportedly instructed Israeli Finance Minister Bezalel Smotrich to write to Economy Minister Nir Barkat and Agriculture Minister Avi Dichter to remove these remaining tariffs.
“Completely eliminating tariffs on imports from the U.S. is a significant step in safeguarding the Israeli economy during a sensitive period and strengthening economic ties with our most important ally – the United States,” Smotrich said.
Dichter said his policies aim to protect local agriculture and his spokesperson said the Agriculture Ministry would know how to compensate farmers if Trump’s tariff policies hurt the sector.
Smotrich asked the ministers to swiftly coordinate with relevant American entities to implement the tariff relief to avoid the potential consequences for Israeli imports, since Trump’s tariffs will be imposed on both “friendly and enemy countries.”
The U.S. is Israel’s largest trading partner and closest ally, with bilateral trade worth $34 billion in 2024, according to the Office of the United States Trade Representative.
The two allies signed a free trade agreement about 40 years ago, a deal that made around 99% of goods from the U.S. tax-free.
Israeli officials said this tariff reduction would apply to “a very limited number of products,” chiefly U.S. food and agricultural imports.
This is a breaking news story. Please check back for updates.
