Israel in Talks with US to Reduce Tariffs Imposed by Trump
Israel is in discussions with the United States to reduce the tariffs imposed by former President Donald Trump as part of a broader global tariff strategy, according to Israeli Finance Minister Bezalel Smotrich.
Trump’s “Liberation Day” tariffs, which targeted both allies and adversaries, were announced just a day after Israel lifted its remaining customs duties on US imports. While some of the harshest tariffs were aimed at major trade partners, Israeli goods, despite the strong US-Israel ties, were subjected to a 17% tariff.
“The Ministry of Finance is maintaining ongoing dialogue with the US administration to reduce the scope of the tariffs and mitigate their impact on Israeli industry,” Smotrich wrote on X (formerly Twitter) on Thursday.
Smotrich had previously met with US Treasury Secretary Scott Bessent in Washington in March to discuss economic matters. On Tuesday, Israel announced the removal of all remaining tariffs on US imports, which affected the small percentage of American goods still subject to duty.
The decision to lift Israeli tariffs drew criticism, especially in light of the 17% tariff imposed on Israeli goods entering the US. “Smotrich rushed to remove all tariffs on imports from the US to Israel, only to face 17 percent tariffs on Israeli goods entering the US. Genius,” commented Israeli lawmaker Vladimir Beliak on X.
Israel’s Manufacturers Association (MAI) expressed surprise over the tariffs, suggesting that the customs duty might be linked to the US trade deficit with Israel. The MAI called the decision a significant economic challenge and indicated that it was in contact with US and Israeli officials to seek exemptions or reductions in the tariffs.
In 2024, the US trade deficit with Israel reached approximately $7 billion, according to the US Department of Commerce.
Key Points:
-
Israel-US Tariff Discussions: Israel is in talks with the US to reduce tariffs imposed by Trump, focusing on minimizing the impact on Israeli industries.
-
17% Tariff: Despite strong US-Israel ties, Israeli goods were subjected to a 17% tariff under Trump’s “Liberation Day” tariffs.
-
Criticism and Concerns: Israeli lawmakers and the Manufacturers Association criticized the timing of Israel’s tariff removal, highlighting the negative impact on Israeli exports.
-
Trade Deficit: The US trade deficit with Israel stood at approximately $7 billion in 2024, which may have influenced the decision to impose tariffs.
The ongoing talks between Israel and the US reflect Israel’s efforts to mitigate the economic fallout from Trump’s tariff imposition. With the trade deficit and economic concerns at the forefront, Israel is pushing for a reduction in the tariffs to protect its industries and maintain strong bilateral trade relations with the US.
