Israel has eliminated import duties and tariffs on all American goods to bolster the bilateral partnership and lower the cost of living in Israel, according to a statement from the Prime Minister’s office on Tuesday.
Under the directive of Prime Minister Benjamin Netanyahu, Finance Minister Bezalel Smotrich, and Economy and Industry Minister Nir Barkat, Israel has abolished all customs duties and tariffs previously imposed on products from the United States.
The United States is Israel’s strongest ally and largest trading partner. In 2024, goods exports to the U.S. reached $17.3 billion, while services exports totaled $16.7 billion.
The Israeli government stated that the 1985 free trade agreement with the United States ensures nearly 99% of goods imported from the U.S. are already exempt from customs duties. As a result, the new customs duty reductions will only apply to a small selection of items, specifically food and agricultural products imported from the U.S.
In a joint statement with the Economy Minister and Finance Minister, Prime Minister Benjamin Netanyahu emphasized that eliminating tariffs on American goods is intended to foster market competition, broaden economic opportunities, and lower living costs.
“The reduction in customs duties will, in effect, expand the US-Israel trade agreement and strengthen bilateral strategic relations,” the Prime Minister’s Office added.
The reduction also lowers living costs for Israeli consumers by increasing imports of food and agricultural products from the U.S., which will now be exempt from customs duties.
The Israeli government’s recent directive was issued just a day before U.S. President Donald Trump imposed reciprocal tariffs on trade partners with higher duties to address a trade imbalance.
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