Israel cancels all tariffs on US goods

The Israeli government issued a statement earlier this month saying that, in accordance with the instructions of Prime Minister Netanyahu, Finance Minister Smotrich and Minister of Economy and Industry Barkat, Israel will cancel all tariffs imposed on goods imported from the United States so far.

The decision has been approved by the Finance Committee of the Israeli Knesset and the order was formally signed by the Israeli Minister of Economy and Industry. After the relevant amendments come into effect, all goods imported from the United States to Israel will enjoy zero tariff treatment.

The statement pointed out that the United States is Israel’s most important strategic ally and largest trading partner.

In 2024, Israel’s exports to the United States reached US$17.3 billion, of which service exports were about US$16.7 billion. Since the signing of the US-Israel Free Trade Agreement in 1985, about 99% of US imports to Israel have been exempted from tariffs. Therefore, this adjustment mainly involves a small number of food and agricultural products.

The move to cancel tariffs is seen as an extension of the US-Israel trade agreement, aimed at strengthening bilateral strategic relations.

This move is not surprising. After all, the United States and Israel have always shown an exceptionally close relationship since the outbreak of the Israeli-Palestinian conflict. The United States has repeatedly publicly threatened to support/protect Israel at all costs.