Trump’s reciprocal tariffs imminent: Israel cancels all tariffs on U.S. products

Israel’s Finance Minister Bezalel Smotrich signed a directive on Tuesday, April 1, immediately canceling all remaining tariffs on American imports, allowing Israel to grant duty-free status to all products from the United States. This move comes just a day before President Trump is expected to announce reciprocal tariffs.

According to the White House’s schedule, President Trump is set to announce the reciprocal tariffs at 4 p.m. Eastern Time on Wednesday.

Israeli Prime Minister Benjamin Netanyahu, Finance Minister Smotrich, and Economy Minister Nir Barkat issued a joint statement on Tuesday declaring the cancellation of all tariffs on American goods, stating that it is aimed at supporting their “closest ally” and “most important trading partner.”

The Prime Minister’s Office indicated that this action still requires final approval from Economy Minister Barkat and the parliamentary Finance Committee. Once approved, “all tariffs on products imported from the United States will be lifted.”

“Canceling tariffs on American goods is another step in the policies my government has adopted over the past decade to open up market competition, introduce diversification in the economy, and reduce the cost of living,” Netanyahu said in the statement.

“In addition to bringing economic benefits to the Israeli economy and its citizens, this measure will also enable us to further strengthen the alliance and connections between Israel and the United States,” he added.

The United States is Israel’s largest trading partner and closest ally, with bilateral trade reaching $34 billion in 2024.

Forty years ago, Israel and the United States signed a free trade agreement, granting duty-free treatment to about 98% of U.S. exports to Israel. Concerning the remaining tariffs on American products, the Israeli Finance Ministry noted that the tariffs imposed on products imported from the United States, mainly agricultural products, amount to approximately 42 million shekels ($11.3 million) annually.

“The complete removal of tariffs on American imports is an important step to safeguard the Israeli economy during sensitive times and strengthen our economic relations with our most important ally, the United States,” Finance Minister Smotrich stated on Tuesday. “We will continue to take decisive actions to protect Israel’s exports and maintain Israel’s competitive advantage on the international stage.”

“This measure aims to promote a zero-tariff policy between the two countries, maintaining a positive trading relationship with the United States,” the Finance Minister said.

Economy Minister Barkat mentioned that the cancellation of American tariffs is a supplementary step for bilateral trade relations that “will facilitate further economic cooperation in the future.”

(This article referenced reports from the Israel Times and Reuters.)