Israeli Finance Minister Bezalel Smotrich signed an order approving the elimination of the last remaining tariffs on import of goods from the United States.
The order, which would remove about $11.3 million in annual tariffs primarily in agriculture, requires approval from lawmakers of the Knesset Finance Committee.
Hebrew media reported that the move, said to have been coordinated with Israeli Prime Minister Benjamin Netanyahu, came in anticipation of U.S. President Donald Trump’s “Liberation Day” on Wednesday, during which he reportedly will unveil a “country-based” tariff plan.
Since Israel and the United States signed a free trade deal in 1985—Washington’s first-ever such agreement—some 98% of goods were already tax free.
“Most U.S. products imported into Israel are already exempt from tariffs and today, we approved the removal of the remaining tariffs on all American goods entering Israel,” Smotrich stated.
“The current U.S. administration presents a real opportunity to reshape the strategic economic relationship between our countries,” he stated. “This move will deepen our ties, reinforce the United States as a key economic partner and pave the way for stronger cooperation.”
“Eliminating these tariffs supports Israel’s efforts to lower the cost of living and will help drive more competition, especially in the food sector, for the benefit of Israeli consumers,” the minister added.
A spokesman for Avi Dichter, the Israeli agriculture and food security minister, told Reuters that the minister’s policies aim to protect local farms, and the ministry vows to compensate farmers if Trump’s tariff policies hurt the sector.
U.S. Treasury Secretary Scott Bessent and Smotrich held what was described as “a highly impactful meeting” last month to discuss the economic partnership between Washington and Jerusalem.
The meeting “highlighted the importance of deepening economic cooperation, fostering innovation and strengthening financial and trade ties,” per a joint U.S. and Israeli readout.
The March 5 meeting was the first in-person one between Smotrich and a senior Trump administration official, marking a major shift from the prior administration, which avoided Smotrich and considered sanctioning him for what it said were far-right views.
