US tariffs: Israel ‘shocked’ by Trump’s move as it had ‘completely eliminated’ tariffs on US goods

Trump tariffs: Israel expressed its shock at US President Donald Trump’s move to impose tariffs on the country as it had ‘completely eliminated’ tariffs on US goods. Israeli officials reportedly are in complete shock over the tariffs. 

According to Israeli media i24News correspondent Amichai Stein, who posted on X, economic officials said, "We are in shock. We were sure that the decision to completely cancel tariffs on imports from the US would prevent this move. But it didn't happen."

Israel had announced the cancellation of its remaining tariffs on imports from the US, as confirmed by officials on Tuesday, ahead of the Trump administration's imposition of reciprocal levies on global trading partners. The move requires final approval from Economy Minister Nir Barkat and the parliament's finance committee, both of which are anticipated. 

Once approved, tariffs on all US imports will be abolished, according to the prime minister's office.

The US is Israel's largest trading partner and a key ally, with bilateral trade valued at $34 billion in 2024. Prime Minister Benjamin Netanyahu, in a joint statement with Barkat and Finance Minister Bezalel Smotrich, stated that the removal of tariffs on American goods aimed to open the market to competition, diversify the economy, and reduce the cost of living. 

Netanyahu further highlighted the economic benefits for Israel and its citizens, as well as the potential to enhance the alliance and ties between Israel and the US.

Israel and the US signed a free trade agreement 40 years ago, with approximately 98 per cent of US goods currently being tax-free. The finance ministry noted that tariff collection from US imports, primarily in the agricultural sector, amounts to around 42 million shekels ($11.3 million) annually.