Israel's Finance Minister Bezalel Smotrich announced on Tuesday that he had initiated a process to immediately eliminate the remaining tariffs on imports from the United States, a day before the Trump administration imposes reciprocal tariffs on its international trade partners.
Smotrich signed an order to remove these tariffs, although the measure still needs the approval of Economy Minister Nir Barkat, who did not immediately respond about his intentions to do so.
Israel and the United States signed a free trade agreement in 1985, which allowed for a gradual reduction of tariffs, achieving the elimination of taxes on 98% of American goods to Israel.
La medida fue anunciada por el ministro israelí de Finanzas
However, the agricultural sector has been an exception, as some products remain subject to tariffs, which generate an annual revenue of about 42 million shekels (approximately 11.3 million dollars).
Faced with the possibility of the Trump administration imposing tariffs on countries, including allies, Smotrich urged the Ministers of Economy and Agriculture to quickly coordinate with U.S. authorities to implement this tariff elimination, in order to avoid negative consequences for Israeli imports.
Smotrich emphasized that the elimination of these tariffs is a significant step to protect the Israeli economy at a sensitive time and strengthen economic ties with its main ally, the United States.
The policy of Israel's Ministry of Agriculture is to protect local agricultural production, so if Trump's tariff policies negatively affect this sector, compensating Israeli farmers will be considered.
Israel mantenía algunos aranceles con el sector agrícola estadounidense
This move has been interpreted as a proactive measure to mitigate the impact of reciprocal tariffs that would be announced the following day.
The decision was coordinated with Prime Minister Benjamin Netanyahu and Economy Minister Nir Barkat, but still requires the final approval of the Knesset Finance Committee (Israeli parliament) to be definitively implemented.
Smotrich had sent a letter on March 20 to Barkat and Agriculture Minister Avi Dichter, urging the elimination of tariffs, especially in the agricultural sector, in response to the Trump administration's plans to impose reciprocal tariffs on its trade partners starting April 2.
El ministro de Agricultura y Smotrich discutieron acerca de eta implementación
This way, Israel seeks to maintain a strong trade relationship with the United States and avoid the effects of the new tariffs that the U.S. administration is expected to impose.
The free trade agreement between both countries allowed for the gradual elimination of tariffs, but there are still restrictions on certain products, such as agricultural ones, to protect local production and ensure food security.
This announcement is also perceived as a major victory for the Trump administration, which has harshly criticized its allies and enemies for exploiting the United States with disproportionate trade tariffs.
Israel's decision to eliminate tariffs on imports of American products comes in a context where the Trump administration has intensified its focus on reducing trade imbalances and renegotiating international trade agreements.
La medida israelí es una gran victoria para la administración Trump
