Israel cancels remaining import tariffs on U.S. goods to win a ‘reprieve’ from Trump's reciprocal tariffs

According to the Times of Israel, on Tuesday, Israeli Finance Minister Smotrych signed a directive to immediately cancel all remaining tariffs on imports of U.S. goods, in an apparent attempt to win a ‘reprieve’ from reciprocal tariffs that the Trump administration is expected to announce on Wednesday. The order was coordinated by Prime Minister Benjamin Netanyahu and Economy Minister Barkat, but still needs final approval from the Knesset Finance Committee. In a letter sent to Barkat and Agriculture Minister Avi Dichter on March 20, Smotrych called for the elimination of tariffs on U.S. products, mainly in the agricultural sector. Israel and the United States signed a free trade agreement in 1985. Under the agreement, the U.S. and Israel implemented phased tariff reductions, culminating in the almost complete elimination of tariffs on manufactured goods in 1995. However, the agreement did allow the United States and Israel to maintain some import and tariff restrictions, such as quantitative restrictions and charges on agricultural products, primarily to safeguard local production and food security.