Israel To Drop All Tariffs on US Imports as Trump Unveils New Trade Measures
Israel announced Tuesday that it would eliminate all remaining tariffs on imports from the United States, a move interpreted as both symbolic and strategic. The decision, detailed in a joint statement by the Prime Minister’s Office and the Finance and Economy ministries, still requires approval from the Knesset’s Finance Committee.
While nearly all American goods entering Israel are already duty-free under a long-standing free trade agreement, the remaining tariffs—mostly on agricultural products—amount to roughly 42 million shekels, or about $11.4 million, annually, according to the Israeli Finance Ministry.
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The announcement came just one day before US President Donald Trump introduced sweeping new tariffs on April 2 targeting all American trade partners. These include a 25% tax on automobile imports and other measures aimed at countries accused of unfair trade practices. The Trump administration has not confirmed any exemptions, and initial reports suggest none have been granted.
Israeli media have speculated that Jerusalem’s move to lift its final import duties was timed to preempt possible reciprocal measures. The Israeli government said the decision would strengthen its economic ties with Washington and could help lower the cost of living.
According to Israel’s Central Bureau of Statistics, the US was Israel’s top export market in 2024, with $17.2 billion in exports. Imports from the US totaled $9.2 billion, second only to China, from which Israel imported $13.5 billion in goods last year.
