Israel First To Join Trump’s New Zero-Zero Tariff Regime

Ahead of President Trump's 'Liberation Day', Israeli Finance Minister Smotrich revoked all tariffs on U.S. products. Becoming the first nation to join the President’s new tariff regime

Israel has cancelled its remaining tariffs on imports from the United States. The move came a day before the Trump administration hit global trading partners with reciprocal levies, reported Steven Scheer, writing for Reuters.

The move still needs a final signature from Economy Minister Nir Barkat and parliament's finance committee - both expected - but once done "tariffs on all imports from the United States will be cancelled," Prime Minister Netanyahu's office said.

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

"The removal of tariffs on American goods is another step ... to open the market to competition, to diversify the economy, and to lower the cost of living," Prime Minister Benjamin Netanyahu said in a joint statement with Barkat and Finance Minister Bezalel Smotrich.

"In addition to the economic benefits for the economy and the citizens of Israel, the current move will enable us to further strengthen the alliance and ties between Israel and the United States."

Barkat said abolishing the tariffs is a complementary step to bilateral trade relations "that will promote further economic cooperation in the future..."

Israel and the U.S. signed a free trade agreement 40 years ago and around 98% of goods from the United States are now tax-free. The finance ministry noted that tariff collection from U.S. imports - mainly in the agricultural sector - stands at about 42 million shekels ($11.3 million) a year.

The limited list of agricultural products that are subject to import tariff protection include apples, pears, persimmons, almonds, potatoes, tomatoes, peanuts, hummus, processed corn, and frozen vegetables, the Times of Israel reported according to the Israeli Agriculture Ministry.

Federation of Israeli Chambers of Commerce CEO Gilit Rubinstein commended the action to “remove tariff and regulatory barriers that restrict imports from the US.”

“The removal of import barriers from the US is a necessary and beneficial step to avoid jeopardizing Israeli exports to the US,” said Rubinstein. “Reducing tariffs, along with regulatory relief, will also contribute to increasing competition and addressing the cost of living.”

Rubinstein said that the FICC is working with government ministries to support efforts to “remove the remaining barriers, such as those related to toys and baby products, food, transportation products, and more.”

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