Israel cancels tariffs on imports of remaining U.S. goods to win “probation” on Trump’s reciprocal tariffs
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2025-04-02 02:02 7,440
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According to the Times of Israel, Israel Treasury Secretary Smotrich signed a directive on Tuesday to immediately cancel all remaining U.S. goods import tariffs, apparently in order to win a "probation" of the Trump administration's expected reciprocal tariffs announced on Wednesday. The order was coordinated by Israeli Prime Minister Netanyahu and Economic Minister Barkat, but it still needs final approval from the Israeli Parliament’s Finance Committee. In a letter sent to Barcate and Agriculture Minister Avi Dicht on March 20, Smotrich demanded the lifting of tariffs on U.S. products, mainly in the agricultural sector. Israel and the United States signed a free trade agreement in 1985. Under the agreement, the United States and Israel implemented phased tariff cuts, eventually eliminating tariffs on finished goods in 1995. However, the agreement does allow the United States and Israel to maintain some import and tariff restrictions, such as agricultural product quantity restrictions and charges, mainly to ensure local production and food security.