Key Takeaways
- The Israeli government has canceled all tariffs on US imports, strengthening the bilateral strategic alliance and reducing the cost of living in Israel.
- The move is expected to benefit Israeli consumers by reducing the cost of living and expanding access to US products.
- The US-Israel trade agreement has exempted 99% of goods imported from the US from customs duties, making it easier for Israeli consumers to access US products.
Tel Aviv: The Israeli government has canceled all tariffs on goods imported from the US, a move expected to strengthen the bilateral strategic alliance and reducing the cost of living in Israel, the Israeli Prime Minister’s office said on Tuesday.
“At the directive of Prime Minister Benjamin Netanyahu, Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat, Israel has cancelled all of the customs duties that have been levied until now on products from the US, Israel’s largest trading partner,” the office said in a statement.
The 1985 free trade agreement between the US and Israel exempted 99% of goods imported from the US from customs duties, which means that the government’s current decision will concern a very limited number of products, mostly imported food and agricultural products, the statement added.
“The reduction in customs duties will, in effect, expand the US-Israel trade agreement and strengthen bilateral strategic relations. The reduction also entails an assurance to Israeli consumers in the form of a possible reduction in the cost of living with the anticipated expansion in imports of food and agricultural products from the US, which will benefit from a zero customs rate,” the office added.
The US is Israel’s closest ally and its most important trade partner. In 2024, Israel exported $17.3 billion worth of goods and $16.7 billion worth of services to the US.
