Israel Removes All Duties on US Imports Amid Anticipation of Trump's Tariff Decision

In a major policy change, Israel has decided to scrap all remaining trade tariffs on imports from the United States. The move was announced in a statement released jointly by the Prime Minister's Office, the finance ministry, and the economy ministry.

Although considered a political and diplomatic gesture mostly, its economic influence is predicted to be minor. An Israeli-US free trade deal four decades in the making already gives duty-free treatment to 99% of US imports, as cited in a Xinhua news agency report.

Impact on Trade and Economic Relations
The Israeli finance ministry explained that the outstanding tariffs—mainly levied on farm produce—total about 42 million shekels (around $11.4 million) per year.

But the move is still pending approval by the finance committee of the Israeli parliament. The timing of the move has generated speculation in Israeli media, as it precedes an anticipated announcement by US President Donald Trump of a new round of tariffs on all US trading partners. Most analysts think Israel's move may be a bid to pre-emptively gain an exemption from any reciprocal duties that might be imposed.

Strengthening US-Israel Strategic Relations
The joint statement reiterated that removing tariffs would further strengthen the strategic relationship between the two countries. It is also anticipated to help reduce the cost of living in Israel.

Per the Central Bureau of Statistics of Israel, the US was Israel's biggest export market in 2024, as total exports accounted for $17.2 billion. As a source of imports, the US ranked second behind China, into which Israel imported $13.5 billion of goods last year, with imported goods worth $9.2 billion coming into Israel from the US.

With this latest step, Israel aims to strengthen its economic and political relations with Washington while possibly getting leverage in ongoing trade negotiations.