(The Lion) — At least one Middle Eastern country wants freer trade with the United States.
Israeli Finance Minister Bezalel Smotrich signed a directive Tuesday removing all tariffs on American imports.
The move came one day before what President Donald Trump called “Liberation Day,” when reciprocal tariffs on many American trade partners took effect.
Smotrich said he wants to maintain positive relations with the United States, Israel’s largest trading partner.
“Fully eliminating tariffs on imports from the U.S. is an important step to safeguard the Israeli economy during a sensitive period and to strengthen the economic relationship with our most important ally – the U.S.,” Smotrich told reporters Tuesday. “We will continue to act decisively to protect Israeli exports and preserve the competitive advantages of Israel in the international arena.”
Israeli Prime Minister Benjamin Netanyahu, who spent much of his early life in the United States, said freer trade with an important ally could help lower the cost of living for his people through “anticipated expansion in imports of food and agricultural products from the U.S.”
“Cancelling the customs duties on American goods is an additional step in the policy that my governments have led for a decade in opening up the market to competition, introducing variety to the economy and lowering the cost of living,” Netanyahu told reporters. “We will continue to work to reduce barriers and customs, and bolster our special relationship with the U.S.”
Israel and the United States conduct about $37 billion in trade annually, with American imports from Israel totaling $22.2 billion and exports to the Middle Eastern nation comprising $14.8 billion, the Daily Wire reports.
The two countries already had relatively free trade before this announcement.
Israelis paid only about $11.3 million in duties on American goods last year, thanks to a 1985 free trade agreement between the two nations. Most of the remaining tariffs were on agricultural products.
Dan Catarivas, president of the Israeli Federation of Bi-National Chambers of Commerce and Industry, said the country will likely subsidize its farmers to keep them competitive with American imports.
“The remaining tariffs are in place partly because we don’t want to be flooded by cheap agricultural products and to protect the local agricultural industry, which means that a removal of the tariffs will require the Israeli government to come up with an agricultural policy to support local producers,” Catarivas told the Times of Israel.
