Israel's Benjamin Netanyahu Abolishes Customs Duties On US Goods, Bolstering Trade Ties Ahead Of Trump's 'Liberation Day'

Benjamin Netanyahu, the Prime Minister of Israel, announced the cancellation of all customs duties on U.S. products, aiming to strengthen the alliance between the two nations.

What Happened: Netanyahu posted on X about the abolition of all customs duties on goods from the U.S., Israel’s largest trading partner. He stated that this move is a continuation of the policy his government has led for a decade, aimed at opening up the market to competition, introducing variety to the economy, and lowering the cost of living.

See Also: Intel’s Stock Plummeted 50% In Past 12 Months, Now The Lip-Bu Tan-Led Company Is Betting On 18A Chip Breakthrough: ‘We’re Freezing It’

Finance Minister Bezalel Smotrich, in coordination with Netanyahu, removed the tariffs preemptively to align with Trump's policies and bolster U.S.-Israel relations amid escalating trade tensions and Trump's planned 25% auto import tariff taking effect on April 3, 2025. The order awaits final approval from the Knesset Finance Committee.

Israel’s decision aligns with the 1985 U.S.-Israel Free Trade Agreement, which eliminated most tariffs on manufactured goods by 1995, but left some agricultural tariffs—now worth $11.3 million annually—until this move. The limited tariffs were in place to avoid the market getting flooded with cheap agricultural goods and to protect the local agricultural industry.

Why It Matters: The announcement comes a day ahead of U.S. President Donald Trump's anticipated "Liberation Day" tariff policy reveal on April 2, which includes reciprocal tariffs on nations taxing U.S. goods, triggering global trade shifts.

"The goal of the move is to promote a zero-tariff policy between the countries and maintain positive trade relations with the U.S.," stated Smotrich.

Smotrich also urged ministers to quickly coordinate with U.S. officials to implement tariff relief, as Trump’s tariffs would apply to both allies and adversaries, potentially affecting Israeli imports.

The decision is expected to further strengthen the alliance and ties between Israel and the U.S., and continue to work to reduce barriers and customs, bolstering their special relationship.

• Read Next: Mark Cuban Says, If They Replaced Elon Musk With Him, He’s Still Try to Make Government Smaller By ‘Cutting A Lot Of People’

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.