Israel has eliminated all tariffs on imports from the United States.

Israel’s move came a day before President Trump issued reciprocal tariffs on dozens of countries that have placed tariffs on U.S. goods.

Israel’s Finance Minister Bezalel Smotrich stated, “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 added, “We will continue to act decisively to protect Israeli exports and preserve the competitive advantages of Israel in the international arena.”

Per The Times of Israel:

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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.”

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