On April 1, Israeli Finance Minister Bezalel Smotrich announced plans to eliminate the remaining tariffs on imports from the United States. This initiative aims to bolster the Israeli economy and strengthen economic ties with the U.S., Israel’s most significant ally.
Israel and the United States have maintained a Free Trade Agreement (FTA) since 1985, resulting in approximately 98% of goods being traded without tariffs. However, certain products, particularly in the agricultural sector, have continued to face duties.
Finance Minister Smotrich has formally requested Economy Minister Nir Barkat and Agriculture Minister Avi Dichter to collaborate on removing these residual tariffs. The tariffs in question generate about 42 million shekels (approximately $11.3 million) annually, primarily from agricultural imports.
Smotrich emphasized that “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.”
Agriculture Minister Avi Dichter has expressed a commitment to protecting local agriculture. His spokesperson indicated that the ministry would implement measures to compensate Israeli farmers who might be adversely affected by the removal of these tariffs.
This move comes in anticipation of potential reciprocal tariffs from the U.S. administration under President Donald Trump, who has signaled intentions to impose levies on various global trading partners. By proactively eliminating tariffs on U.S. imports, Israel aims to mitigate possible repercussions on its exports to the United States.
Finance Minister Smotrich has urged swift coordination with relevant American authorities to implement the tariff removal. This proactive approach seeks to prevent any adverse consequences for Israeli imports and to reinforce the longstanding economic partnership between the two nations.
