Israel eliminates customs duties on all imports from US

Israel has announced the removal of customs duties on all goods imported from the United States, its largest trading partner.

According to a joint statement from the Israeli Prime Minister’s Office, the Ministry of Finance, and the Ministry of Economy and Industry, the government, led by Prime Minister Benjamin Netanyahu, has decided to eliminate all tariffs on imports from the US, Caliber.Az reports via foreign media sources.

The statement notes that under the free trade agreement signed with the US in 1985, Israel already exempts most American imports — approximately 99% — from customs duties.

Initially, the tax exemptions will apply to a limited range of food and agricultural products before expanding to all goods. The removal of tariffs on food and agricultural imports is expected to help reduce the cost of living in Israel.

In 2024, Israel’s exports to the US amounted to $17.3 billion in goods and $16.7 billion in services.

Commenting on the decision, Prime Minister Netanyahu stated: "Eliminating customs duties on American goods is another step in the decade-long policy pursued by my government to open the market to competition, diversify the economy, and lower the cost of living. Beyond the economic benefits for Israel’s market and citizens, these efforts will further strengthen the alliance and ties between Israel and the United States."

Finance Minister Bezalel Smotrich added: "This tariff exemption will benefit the State of Israel. It aligns with the government’s policy to combat rising living costs and will even enhance competition in the food sector."

Notably, Israel’s move comes just before the implementation of the US decision to impose retaliatory tariffs.

By Tamilla Hasanova