Israel scraps tariffs on US imports ahead Trump announcement

Investing.com -- On Tuesday, Israel's Finance Minister Bezalel Smotrich took a significant step by signing a directive to eliminate all remaining tariffs on imports from the United States. This move is seen as a proactive step ahead of U.S. President Donald Trump's reciprocal tariff announcement on Wednesday.

The news is seen as a win for the Trump administration, which has blasted friends and foes alike for "ripping off America for years" on tariffs.

The directive, which takes immediate effect, was made in coordination with Prime Minister Benjamin Netanyahu and Economy Minister Nir Barkat. However, it still requires final approval from the Knesset Finance Committee before it can be fully implemented.

The decision comes after Smotrich sent a letter on March 20 to Barkat and Agriculture Minister Avi (JO:AVIJ) Dichter, urging the removal of tariffs, particularly in the agricultural sector. This is in response to the US administration's plan to impose reciprocal and sectoral tariffs on trading partners, including Israel, starting April 2.

By scrapping the tariffs on US imports, Israel aims to maintain a strong trading relationship with the United States and potentially avoid the impact of the new tariffs set by the US administration. The directive is expected to have immediate implications for trade between the two countries, particularly for Israeli importers and consumers of US goods.