Israel has moved to remove all remaining tariffs on imports from the United States, officials announced Tuesday, according to Reuters. The decision comes just one day before the Trump administration is set to impose reciprocal levies on global trading partners.
The measure still requires final approval from Economy Minister Nir Barkat and parliament's finance committee, but both are expected to support the action.
"The removal of tariffs on American goods is another step to open the market to competition, to diversify the economy, and to lower the cost of living," Prime Minister Benjamin Netanyahu said in a joint statement with Barkat and Finance Minister Bezalel Smotrich.
Israel and the US established a free trade agreement 40 years ago, with approximately 98% of American goods already entering Israel tax-free. The finance ministry noted that tariff collection from US imports – primarily in the agricultural sector – amounts to about 42 million shekels ($11.3 million) annually.
The United States represents Israel's largest trading partner and closest ally, with bilateral trade reaching $34 billion in 2024.
Finance Minister Smotrich had urged ministers to coordinate with US counterparts quickly to implement the tariff relief, noting the move is "a significant step in safeguarding the Israeli economy during a sensitive period and strengthening economic ties with our most important ally."
Israel's Agriculture Ministry indicated it might compensate local farmers if Trump's tariff policies negatively impact the domestic agricultural sector.
