Finance Minister Bezalel Smotrich is making a bold and urgent push to eliminate the last remaining tariffs on American imports, in what he calls a “strategic economic maneuver” to fortify Israel’s alliance with the United States and shield the Israeli economy from a rapidly shifting global trade environment.
Just 24 hours before a new wave of reciprocal tariffs from the Trump administration is set to impact nations across the globe, Smotrich issued a direct appeal to Economy Minister Nir Barkat and Agriculture Minister Avi Dichter, urging them to immediately dismantle what little remains of import duties on U.S. goods.
Although Israel and the U.S. have enjoyed a robust free trade agreement since 1985—under which roughly 98% of goods already cross borders duty-free—a small sliver of tariffs still remains, mostly affecting agricultural imports. According to Finance Ministry figures, these lingering duties generate a modest 42 million shekels annually (approximately $11.3 million). But Smotrich argues that even this minor barrier could carry outsized consequences under the new American tariff regime.
“Completely eliminating tariffs on imports from the U.S. is not just an economic tweak—it’s a critical, strategic act,” Smotrich declared. “It sends an unmistakable message that Israel stands shoulder to shoulder with our most vital ally, especially in times of global economic volatility. This move will help ensure the resilience of our economy during a particularly sensitive period.”
The urgency of Smotrich’s message comes amid news that former U.S. President Donald Trump is poised to reimpose sweeping tariff measures, targeting countries indiscriminately—both allies and adversaries alike. These tariffs could threaten the flow of goods into Israel unless action is taken swiftly.
Smotrich’s initiative, if adopted, would make Israel one of the only nations to fully exempt American products from any form of import tax—potentially earning goodwill from Washington at a critical diplomatic juncture.
🚨BREAKING: Donald Trump: Tariffs won’t be imposed on Israel, even if it disrupts the ceasefire in Gaza or Lebanon.
— Robin 🇮🇱 (@Robiiin_Hoodx) February 1, 2025
Trump stands with Israel. pic.twitter.com/aEwSvg6SrL
Agriculture Minister Avi Dichter, however, expressed a note of caution. While supporting Israel’s economic partnership with the U.S., Dichter emphasized his commitment to protecting the country’s agricultural sector, which could be exposed to intensified competition from U.S. produce.
A spokesperson for the Agriculture Ministry noted that contingency plans are being considered to ensure Israeli farmers aren’t left vulnerable.
“If Trump’s tariffs impact Israel’s agricultural economy, we will act swiftly and decisively to provide appropriate compensation,” the spokesperson said. “Our priority is ensuring food security and safeguarding the livelihoods of our farmers.”
Smotrich has called for the immediate coordination between Israeli and American trade authorities to implement the tariff cancellation without delay.
President Trump when asked if he would levy tariffs against Israel…
— Open Source Intel (@Osint613) February 2, 2025
Reporter: 'Mr. President, would you consider imposing tariffs on Israel if it violated the ceasefires in Gaza or Lebanon, as you have done with countries like Canada and Mexico?
Trump: 'No. I mean, tariffs are… pic.twitter.com/DF2jLTigWE
As the world braces for another round of tariff upheavals from Washington, Israel appears to be seizing the moment to reassert its economic loyalty to the United States—a gesture that could carry both economic and diplomatic dividends in the weeks and months to come.
