Israel canceling all tariffs on US merchandise

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Israel introduced on Tuesday that it’s lifting all tariffs being imposed on U.S. merchandise on the path of Israeli Prime Minister Benjamin Netanyahu and different Israeli leaders.

Netanyahu mentioned the transfer goals to domesticate extra competitors out there, make the financial system extra numerous and scale back the price of residing for the individuals of Israel.

“In addition to the economic benefits for the economy and citizens of Israel, this move will allow us to further strengthen the alliance and ties between Israel and the United States,” Netanyahu mentioned in a press release. “We will continue to work to remove barriers and tariffs and to reinforce our special relationship with the United States.”

Israel introduced the plan in a joint assertion from Netanyahu, Israeli Minister of Finance Bezalel Smotrich, and the nation’s Minister of Financial system and Trade, Nir Barkat, simply at some point earlier than President Donald Trump is about to levy reciprocal tariffs on U.S. commerce companions.

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President Donald Trump greets Israeli Prime Minister Benjamin Netanyahu as he arrives on the White Home on Feb. 4, 2025, in Washington, D.C. (Chip Somodevilla/Getty Photographs / Getty Photographs)

The U.S. is Israel’s largest buying and selling companion and closest ally, with bilateral commerce value $34 billion in 2024, in line with the Workplace of america Commerce Consultant.

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The 2 allies signed a free commerce settlement about 40 years in the past, a deal that made round 99% of products from the U.S. tax-free.

In an aerial view, operations are seen on the Houston Port of Authority in Houston, Texas. President Donald Trump has introduced that he can be imposing a 25% tariff on all overseas metal and aluminum imports into america. (Photograph by Brandon Bell/Getty Photographs / Getty Photographs)

Israeli officers mentioned this tariff discount would apply to “a very limited number of products,” mainly U.S. meals and agricultural imports.

“The current administration presents a real opportunity to shape a new strategic economic future for the two countries while strengthening Israel’s central role as an economic partner,” mentioned Smotrich.

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Trump has mentioned he’ll unveil a set of tariffs on Wednesday, which he has dubbed “Liberation Day.” Trump’s promised tariffs will come on high of a 25% tariff on metal and aluminum imports, 25% tariffs on items imported from Canada and Mexico, and a 20% tariff on items from China.

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To this point, Trump hasn’t detailed Wednesday’s tariffs, although he did announce a 25% tariff on auto imports earlier this week that’s anticipated to take impact late Wednesday.