OAN Staff Brooke Mallory
1:14 PM – Tuesday, April 1, 2025
According to a joint statement released on Tuesday by the Finance Ministry, the Economy and Industry Ministry, and the Prime Minister’s Office — Israel has lifted all of its previous tariffs on United States goods.
The order to change the Trade Tariff and Protective Measures Order was approved by the Finance Committee and signed by Nir Barkat, Minister of Economy and Industry.
In 1985, the United States and Israel struck a free trade agreement that resulted in the complete exemption of almost all U.S. imports from tariffs.
“The joint statement clarified that, due to this, the tariff reduction will apply to a very limited number of products, primarily in the food and agricultural categories,” according to The Jerusalem Post, the oldest and largest English-language daily newspaper in Israel.
According to the statement, the strategic partnership between the two nations would grow if the remaining tariffs were lifted.
Israeli consumers would also profit from a possible drop in living expenses brought on by cheaper U.S. food and agricultural goods, the Israeli outlet continued.
“Canceling the tariffs on American goods is another step in the policy led by my government for over a decade to open the market to competition, introduce diversity into the economy, and reduce the cost of living,” Prime Minister Benjamin Netanyahu stated.
“In addition to the economic benefits for the economy and Israeli citizens, this move will further strengthen the alliance and ties between Israel and the United States. We will continue to work on reducing barriers and tariffs and reinforcing our special relationship with the United States,” he added.
Israeli Chairman of the Religious Zionist Party Bezalel Smotrich posted on X on Tuesday, praising the news.
Hebrew to English translation: “0% tariffs on imports from the U.S.! The current administration is a real opportunity to shape a new strategic economic future for countries, while strengthening the U.S.’s global leadership and Israel’s central role as an economic partner. I see great importance in deepening economic cooperation, promoting innovation, and strengthening financial and commercial ties between the countries, as recently stated by the U.S. and Israeli Treasury Departments. Lowering taxes will benefit the State of Israel and is in line with the government’s policy in the fight against the cost of living, and will even increase competition in the food sector.”
Economy and Industry Minister Nir Barkat, who previously served as mayor of Jerusalem between the years 2008–2018, chimed in with his own comments on the agreement as well.
“We will continue to strengthen the Israeli economy and the strategic ties between our countries. The cancellation of tariffs on imports from the United States is a complementary step to the longstanding trade relations between the two countries, which will promote additional economic cooperation in the future and lead to a reduction in imported product costs,” Barkat stated.
“We will continue working together to open new markets and create economic opportunities that will strengthen the Israeli economy and our solid partnership with the United States, while maintaining local production,” he continued.
However, the decision was met with opposition from others as well, notably from the Israel Farmers’ Federation — which argued that “this is a step that will bring disaster to local agriculture.”
Amit Yifrach, who chairs the federation and serves as Secretary General of the Moshav Movement, and Uri Dorman, the federation’s Secretary General, said in a joint statement that: “Particularly today, after October 7 [2023]… we must internalize the importance of agriculture to the last furrow and strengthen the farmers who live near the [Gaza] border.”
“There is no doubt that trade relations with the U.S. are important and appropriate, but we must ensure that we do not throw the baby out with the bathwater, harming food security and national security,” the joint statement continued.
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