Israel has announced it is eliminating all remaining tariffs on U.S. imports, hours before the Trump administration is set to implement sweeping reciprocal levies against its global trading partners.
The decision, revealed on Tuesday by Israeli officials, still requires final approval from Economy Minister Nir Barkat and the Parliament’s finance committee, though both are expected to support the measure.
“Tariffs on all imports from the United States will be cancelled,” the prime minister’s office said in a statement.
The timing appears deliberately calculated to avoid potential economic consequences as President Donald Trump prepares for what his administration has dubbed “Liberation Day” on April 2, when new tariff rates will be announced worldwide.
Israeli Finance Minister Bezalel Smotrich, who has signed the order to end the tariffs, said the decision aims to safeguard Israel’s economy and strengthen international relations.
“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 in a joint statement with Barkat and Prime Minister Benjamin Netanyahu.
The United States is Israel’s largest trading partner, with bilateral trade valued at $34 billion in 2024. The two nations have maintained a free trade agreement for 40 years, with approximately 98 percent of American goods already entering Israel tax-free.
According to Israel’s finance ministry, the remaining tariffs primarily affected agricultural imports and generated about $11.3 million annually in revenue.
“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 addition to the economic benefits for the economy and the citizens of Israel, the current move will enable us to further strengthen the alliance and ties between Israel and the United States.”
Economy Minister Barkat described the tariff elimination as “a complementary step to bilateral trade relations that will promote further economic cooperation in the future.”
The Israeli agricultural sector could face challenges from the tariff elimination, according to the Agriculture Ministry, which indicated it may provide compensation to Israeli farmers if Trump’s tariff policies negatively impact the sector.
