Tel Aviv: Israel has eliminated all customs taxes, or tariffs, that have been applied to goods from the US, Israel’s biggest trade partner, at the direction of Prime Minister Benjamin Netanyahu, Finance Minister Bezalel Smotrich, and Economy and Industry Minister Nir Barkat.

Customs charges on all US imports will be eliminated if the revision to the order pertaining to trade levies and protective measures is approved by the Knesset Finance Committee and signed by the Economy and Industry Minister.

Israel’s most important commercial partner and closest friend is the United States. The expected value of products and services exported to the United States in 2024 was USD 17.3 billion and USD 16.7 billion, respectively.

The Ministry of Israel clarified that the vast majority (about 99 percent) of items imported from the US are already completely exempt from customs taxes as a result of the 1985 free trade agreement with the US. Consequently, a relatively small number of products—food and agricultural imports from the United States—will be eligible for the first decrease in customs taxes.

According to a joint statement from the Prime Minister’s Office, Finance Ministry, and Economy and Industry Ministry, “the reduction in customs duties will, in effect, expand the US-Israel trade agreement and strengthen bilateral strategic relations.”

With the expected increase in the import of food and agricultural goods from the United States, which would enjoy a zero customs rate, the decrease also includes a promise to Israeli consumers that the cost of living may be lowered.