Smotrich moves to cancel tariffs on US goods in good will gesture to Trump
Collection of customs from imports from the United States amounts to approximately 42 million shekels ($11 million) per year • Smotrich asked the economy & agriculture ministers to hasten the process
Finance Minister Bezalel Smotrich signed an order on Tuesday that aims to abolish all tariffs on imports from the United States. Earlier, he asked Economy Minister Nir Barkat and Agriculture Minister Avi Dichter to streamline the move. Smotrich explained that this is a "significant move to preserve the Israeli economy during a sensitive period, and to strengthen the economic ties with our most important ally, the United States."
According to a letter sent by the minister on March 20 to the ministers, which was revealed Tuesday morning, the total import duties from the United States amount to about 42 million shekels ($11 million) per year, when 98 percent of the imports to Israel are already exempt from tax. Those mainly affected by this move are the farmers, who oppose it.
According to sources close to the minister, this is primarily a declaratory step. This is against the backdrop of recent demands by US government representatives for the cancellation of the tariffs. Otherwise, tariffs will also be imposed on Israel.
Moreover, Smotrich stated that he sees great importance in deepening economic cooperation, promoting innovation, and strengthening financial and trade ties between countries, as recently announced by Smotrich and his US counterpart, Secretary of the Treasury Scott Bessent.
"Reducing taxes will benefit the State of Israel and is consistent with the government's policy in the struggle against the high cost of living and will even increase competition in the food sector," Smotrich argued.
He asked the ministers to quickly coordinate with the relevant American entities, and subsequently to advance the move in the government, updating the customs tariff order for the purpose of implementing the relaxations.