24 Hours Before Trump’s Tariffs Kick In, Israel Bows Knee and Removes All Tariffs on US

Israel ended certain tariffs on goods made in the United States ahead of President Donald Trump launching reciprocal tariffs across the world.

The Tuesday directive from Israeli Finance Minister Bezalel Smotrich made clear that all remaining tariffs on American items would be immediately nixed, according to The Times of Israel.

Prime Minister Benjamin Netanyahu and Economy Minister Nir Barkat worked to issue the move, which must still be greenlit by the Finance Committee in the Knesset, the unicameral parliament in Israel.

Smotrich sent a letter on March 20 to colleagues asking for the removal of remaining tariffs on the United States, especially in the agriculture sector.

“Fully eliminating tariffs on imports from the U.S. is an important step to safeguard the Israeli economy during a sensitive period and to strengthen the economic relationship with our most important ally — the U.S.,” Smotrich said on Tuesday, per the Times.

“We will continue to act decisively to protect Israeli exports and preserve the competitive advantages of Israel in the international arena,” he added.

“The goal of the move is to promote a zero-tariff policy between the countries and maintain positive trade relations with the U.S.”

Tariffs on most manufactured goods between Israel and the United States were phased out between 1985 and 1995 after the two countries signed a free trade agreement, according to the Times.

But the agreement allowed Israel and the United States to keep some import and tariff measures, such as quotas and fees for agricultural products.

The Israeli Finance Ministry said that some $11 million is collected annually from tariffs on American goods, especially with respect to the agriculture sector.

Items subjected to tariffs included apples, pears, persimmons, almonds, tomatoes, hummus, and processed corn.

Dan Catarivas, the president of the Israeli Federation of Bi-National Chambers of Commerce and Industry, told the Times that the last tariffs were trying to protect Israeli food security.

“The remaining tariffs are in place partly because we don’t want to be flooded by cheap agricultural products and to protect the local agricultural industry, which means that a removal of the tariffs will require the Israeli government to come up with an agricultural policy to support local producers,” Catarivas said.

Trump’s “Liberation Day” tariff policy, which is indeed slated to enter into effect on Wednesday, is an attempt to restore reciprocity between America and trade partners.

“If you don’t make your product in America, however, under the Trump administration, you will pay a tariff and, in some cases, a rather large one,” Trump said last month in his address to Congress.

“Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries,” he added.

“April 2, reciprocal tariffs kick in. And whatever they tariff us — other countries — we will tariff them.  That’s reciprocal, back and forth.”

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