In a significant move to strengthen U.S.-Israel trade relations, Prime Minister Benjamin Netanyahu has directed the Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat to cancel all customs duties on products imported from the U.S., Israel’s largest trading partner.
Key Details of the Move:
🔹 Customs Duty Cancellation – Following approval by the Knesset Finance Committee, the customs duties levied on U.S. imports, including food and agricultural products, will be cancelled.
🔹 Impact on U.S.-Israel Trade – This move further strengthens the 1985 Free Trade Agreement between the U.S. and Israel, which already exempts the vast majority (about 99%) of U.S. goods from tariffs. The cancellation will initially apply to a limited range of products, particularly food and agricultural items.
🔹 Economic Benefits – The move is expected to have a positive impact on Israeli consumers, as it could reduce the cost of living due to cheaper imports from the U.S.
“The reduction in customs duties will, in effect, expand the U.S.-Israel trade agreement and strengthen bilateral strategic relations,” stated a joint statement from Israel’s Prime Minister’s Office, Finance Ministry, and Economy and Industry Ministry.
Trade Figures and Strategic Importance
📊 In 2024, Israel’s exports to the U.S. reached USD 17.3 billion in goods, and USD 16.7 billion in services, underscoring the economic significance of the U.S. as Israel’s most important trading partner.
🔗 Strengthening Strategic Relations – This tariff cancellation is seen as a strategic move to deepen bilateral cooperation and enhance economic ties between the two nations.