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."
President Donald Trump greets Israeli Prime Minister Benjamin Netanyahu as he arrives at the White House on Feb. 4, 2025, in Washington, D.C. (Chip Somodevilla/Getty Images / Getty Images)
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.
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