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by IANS |
Jerusalem, April 2 (IANS) Israel announced the elimination of all tariffs on imports from the United States, Israel's Prime Minister's Office and the finance and economy ministries said in a joint statement.
The reduction is largely seen as a diplomatic and political gesture rather than an economic one, as a 40-year-old free trade agreement between Israel and the United States already exempts 99 per cent of US imports from duties, Xinhua news agency reported.
According to the Israeli finance ministry, the remaining tariffs, primarily on agricultural goods, total about 42 million shekels (about $11.4 million) per year.
The move, which still needs approval by the parliament's finance committee, comes a day before US President Donald Trump's expected announcement of a set of tariffs affecting all US trade partners, fueling speculation in Israeli media that the move aims to secure a reprieve from the anticipated reciprocal duties.
The joint statement noted that reducing tariffs will strengthen strategic relations between the two countries and may help reduce the cost of living in Israel.
According to data from Israel's Central Bureau of Statistics, the United States was Israel's top export destination in 2024, with exports totaling $17.2 billion. Goods imported from the US amounted to $9.2 billion in 2024, second only to China, from which Israel imported goods worth $13.5 billion last year.
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