Under the direction of Prime Minister Benjamin Netanyahu; Minister of Finance Bezalel Smotrich; and Minister of Economy and Industry Nir Barkat: Israel has eliminated all tariffs imposed to date on products from the United States - Israel's largest trading partner.
After the Finance Committee approves and the Minister of Economy and Industry signs the order, the amendment to the Trade Levy and Safeguards Order will enter into force, and tariffs on all imports from the United States will be eliminated.
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The United States is Israel's closest ally, and also its most significant trading partner.
In 2024, exports of goods to the United States were $17.3 billion, and exports of services were estimated at $16.7 billion.
The 1985 Free Trade Area Agreement between Israel and the United States has resulted in the vast majority (approximately 991,000 tons) of products imported from the United States already being fully duty-free. Therefore, the tariff reduction will apply to a very limited number of products, in the category of food and agricultural imports from the United States.
Reducing tariffs will in fact lead to an expansion of the Israel-United States trade agreement, and to strengthening the strategic relationship between the countries.
The reduction also contains a promise to consumers in Israel in the form of a possible reduction in the cost of living with the expected expansion of imports of food and agricultural products from the United States, which will benefit from a zero tariff rate.
Prime Minister Benjamin Netanyahu: "The elimination of tariffs on American goods is another step in the policy that governments led by me have been leading for a decade to open the market to competition, to diversify the economy, and to lower the cost of living.".
""In addition to the economic benefits to the Israeli economy and citizens, this current move will allow us to further strengthen the alliance and ties between Israel and the United States. We will continue to work to lower barriers and tariffs, and to strengthen our special relationship with the United States.".
Finance Minister Bezalel Smotrich: "The current administration is a real opportunity to shape a new strategic economic future for countries, while strengthening Israel's central role as an economic partner.".
""I see great importance in deepening economic cooperation, promoting innovation, and strengthening financial and commercial ties between the countries, as recently stated by the American and Israeli Treasury Departments.".
""Lowering taxes will benefit the State of Israel and is in line with the government's policy in the fight against the cost of living and will even increase competition in the food sector.".
Minister of Economy and Industry, MK Nir Barkat: “We continue to strengthen the Israeli economy and the strategic ties between the countries. The elimination of tariffs on imports from the United States is a complementary step to the trade relations between the countries that share a long-standing trade agreement that will promote additional economic cooperation in the future and lead to a reduction in imported products. We will continue to work together to open new markets and create economic opportunities that will strengthen the Israeli economy and the strong partnership with the United States, while preserving local produce.”.
