Israeli Finance Minister Bezalel Smotrich said on Tuesday he wants to immediately eliminate remaining tariffs on imports from the United States, a day before the Trump administration hits global trading partners with reciprocal levies.
Israel and the U.S. signed a free trade agreement in 1985 and some 98% of goods are tax free. The finance ministry noted that tariff collection from U.S. imports - mainly in the agricultural sector - stands at about 42 million shekels ($11.3 million) a year.
Smotrich wrote to Economy Minister Nir Barkat and Agriculture Minister Avi Dichter to remove these remaining tariffs.
"Completely eliminating tariffs on imports from the U.S. is a significant step in safeguarding the Israeli economy during a sensitive period and strengthening economic ties with our most important ally – the United States," Smotrich said.
Dichter said his policies aim to protect local agriculture and his spokesperson said the Agriculture Ministry would know how to compensate farmers if Trump's tariff policies hurt the sector.
Smotrich asked the ministers to swiftly coordinate with relevant American entities to implement the tariff relief to avoid the potential consequences for Israeli imports, since Trump's tariffs will be imposed on both "friendly and enemy countries."
($1 = 3.7067 shekels)