Finance Minister Bezalel Smotrich on Tuesday signed a directive to scrap all remaining tariffs on imports from the US with immediate effect, in an apparent attempt to win a reprieve from the Trump administration’s levy of reciprocal duties expected to be announced Wednesday.

The order was coordinated with Prime Minister Benjamin Netanyahu and Economy Minister Nir Barkat, but is subject to final approval by the Knesset Finance Committee.

In a letter sent on March 20 to Barkat and Agriculture Minister Avi Dichter, Smotrich asked for the removal of tariffs on products from the US, mainly in the area of agriculture, as reciprocal and sectoral tariffs on US trading partners are set to be imposed on April 2 by the US administration.


Finance Minister Bezalel Smotrich on Tuesday signed a directive to scrap all remaining tariffs on imports from the US with immediate effect, in an apparent attempt to win a reprieve from the Trump administration’s levy of reciprocal duties expected to be announced Wednesday.

The order was coordinated with Prime Minister Benjamin Netanyahu and Economy Minister Nir Barkat, but is subject to final approval by the Knesset Finance Committee.

In a letter sent on March 20 to Barkat and Agriculture Minister Avi Dichter, Smotrich asked for the removal of tariffs on products from the US, mainly in the area of agriculture, as reciprocal and sectoral tariffs on US trading partners are set to be imposed on April 2 by the US administration.

Israel and the US signed a free trade agreement in 1985. Under the agreement, the US and Israel implemented phased tariff reductions, eventually leading to the almost complete elimination of duties on manufactured goods in 1995. However, the agreement does allow the US and Israel to maintain some import and tariff restrictions, like quantitative restrictions and fees on agricultural products, mainly to safeguard local production and food security.

“Fully eliminating tariffs on imports from the US is an important step to safeguard the Israeli economy during a sensitive period and to strengthen the economic relationship with our most important ally – the US,” Smotrich said Tuesday. “We will continue to act decisively to protect Israeli exports and preserve the competitive advantages of Israel in the international arena.”

“The goal of the move is to promote a zero-tariff policy between the countries and maintain positive trade relations with the US,” said Smotrich.

Customs duties collected on imports from the US, mainly agriculture-related products, currently amount to a mere NIS 42 million ($11 million) per year, according to Finance Ministry data. The limited list of agricultural products that are subject to import tariff protection include apples, pears, persimmons, almonds, potatoes, tomatoes, peanuts, hummus, processed corn, and frozen vegetables, according to the Agriculture Ministry.

“The remaining tariffs are in place partly because we don’t want to be flooded by cheap agricultural products and to protect the local agricultural industry, which means that a removal of the tariffs will require the Israeli government to come up with an agricultural policy to support local producers,” Dan Catarivas, president of the Israeli Federation of Bi-National Chambers of Commerce and Industry, told The Times of Israel.

For the full article, visit The Times of Israel.