Israel has canceled all tariffs on U.S. imports ahead of President Donald Trump’s reciprocal tariffs, which he planned to implement on what he deemed “Liberation Day.”
On April 1, Israel’s Finance Minister Bezalel Smotrich signed a directive to immediately end all tariffs on U.S. imports.
Trump planned to implement the tariffs just one day later, on April 2. Speaking with reporters, the president stated that the tariffs would be implemented on “all countries,” though his advisors have clarified that the tariffs will focus on select countries that have the largest trade imbalances with the U.S. Many countries have as high as 100% tariffs on U.S. imports, but are complaining that Trump plans to implement reciprocal tariffs, meaning that the U.S. would charge the same amount back toward their exports.
Israel’s finance minister has stated that his goal is to implement a “zero-tariff policy” and to “maintain positive trade relations with the U.S., especially as the U.S. is currently Israel’s largest trade partner. According to The Daily Wire, the “total goods trade [is] estimated to be valued at $37 billion in 2024. In 2024, the US imports from Israel stood at $22.2 billion, while exports were estimated at $14.8 billion, according to the US trade representative.”
While signing the directive on April 1, Smotrich stated: “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.”
“We will continue to act decisively to protect Israeli exports and preserve the competitive advantages of Israel in the international arena,” the Israeli finance minister added.
Smotrich’s directive came in coordination with Israeli Prime Minister Benjamin Netanyahu and Israeli Economy Minister Nir Barkat. However, the directive still needs final approval from the Knesset Finance Committee, as well as the signature of the Economy and Industry Minister. The tariffs being removed are reportedly placed on fruits, vegetables, and other agricultural products.
Netanyahu also released a statement about the decision, noting that ending the tariffs will benefit Israeli consumers through potentially reducing their cost of living via an “anticipated expansion in imports of food and agricultural products from the US.”
“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 added. “We will continue to work to reduce barriers and customs, and bolster our special relationship with the US.”
Today we cancelled all of the customs duties levied on products from the US, Israel's largest trading partner.
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,…
— Benjamin Netanyahu – בנימין נתניהו (@netanyahu) April 1, 2025
