Israel canceling all tariffs on US products
Israel announced on Tuesday that it is lifting all tariffs being imposed on U.S. products at the direction of Israeli Prime Minister Benjamin Netanyahu and other Israeli leaders.
Netanyahu said the move aims to cultivate more competition in the market, make the economy more diverse and reduce the cost of living for the people of Israel.
"In addition to the economic benefits for the economy and citizens of Israel, this move will allow us to further strengthen the alliance and ties between Israel and the United States," Netanyahu said in a statement. "We will continue to work to remove barriers and tariffs and to reinforce our special relationship with the United States."
Israel announced the plan in a joint statement from Netanyahu, Israeli Minister of Finance Bezalel Smotrich and the country's Minister of Economy and Industry, Nir Barkat, just one day before President Donald Trump was set to levy reciprocal tariffs on U.S. trade partners.
The U.S. is Israel's largest trading partner and closest ally, with bilateral trade worth $34 billion in 2024, according to the Office of the United States Trade Representative.
The two allies signed a free trade agreement about 40 years ago, a deal that made around 99% of goods from the U.S. tax-free.
Israeli officials said this tariff reduction would apply to "a very limited number of products," chiefly U.S. food and agricultural imports.
"The current administration presents a real opportunity to shape a new strategic economic future for the two countries while strengthening Israel's central role as an economic partner," said Smotrich.
Trump has said he will unveil a suite of tariffs on Wednesday, which he has dubbed "Liberation Day." Trump's promised tariffs will come on top of a 25% tariff on steel and aluminum imports, 25% tariffs on goods imported from Canada and Mexico, and a 20% tariff on goods from China.
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So far, Trump hasn't detailed Wednesday's tariffs, though he did announce a 25% tariff on auto imports earlier this week that is expected to take effect late Wednesday.
Fox News Digital's Anders Hagstrom contributed to this report.