In a significant win for U.S. trade policy, Israel officially eliminated all tariffs on U.S. goods just ahead of President Donald Trump’s tariff “Liberation Day." The move highlights the deep economic and strategic ties between the U.S. and Israel, with America being Israel’s largest trading partner and closest ally—bilateral trade reached $34 billion in 2024, according to the Office of the United States Trade Representative. "Liberation Day" refers to Trump’s bold tariff strategy, which includes existing 25 percent tariffs on steel and aluminum imports, 25 percent tariffs on goods from Canada and Mexico, and a 20 percent tariff on Chinese imports, all aimed at protecting American industries and leveling the playing field in global trade.
On Tuesday, Prime Minister Benjamin Netanyahu’s Office, Finance Ministry, and Economy and Industry Ministry announced that it would end all tariffs on the U.S. to encourage greater market competition, diversify the economy, and lower the cost of living for Israeli citizens.
“Cancelling the customs duties on American goods is an additional step in the policy that my governments have led for a decade in opening up the market to competition, introducing variety to the economy, and lowering the cost of living,” Netanyahu said. “In addition to the economic advantages to the market and to the citizens of Israel, the current effort will allow us to further strengthen the alliance and ties between Israel and the US. We will continue to work to reduce barriers and customs and bolster our special relationship with the U.S.”
The tariffs set to be eliminated reportedly apply to fruits, vegetables, and other agricultural products. Currently, Israel imposes over $11.3 million annually in customs duties on American goods.
Israel’s Finance Minister Bezalel Smotrich said the nation aims to have a “zero-tariff policy” and “maintain positive trade relations” with America.
“Fully eliminating tariffs on imports from the US is an important step to safeguard the Israeli economy during a sensitive period and to strengthen the economic relationship with our most important ally – the US,” Smotrich said. “We will continue to act decisively to protect Israeli exports and preserve the competitive advantages of Israel in the international arena.”
Join the conversation as a VIP Member