The Israeli government has announced the complete removal of customs duties on American products. The directive, issued by Prime Minister Benjamin Netanyahu in coordination with Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat, eliminates all existing tariffs on imports from the United States—Israel’s largest and most strategic trading partner.
The Prime Minister’s Office stated: “At the directive of Prime Minister Netanyahu, Finance Minister Smotrich and Economy & Industry Minister Barkat, Israel has cancelled all of the customs duties that have been levied until now on products from the U.S.”
A Strategic Economic Boost
This landmark decision is more than a trade policy adjustment—it’s a reaffirmation of the unbreakable alliance between Israel and the United States. It comes amid unprecedented military and diplomatic cooperation between the two nations, particularly in the face of rising threats from Iran and its terror proxies. By removing tariffs, Israel is not only promoting economic growth but also sending a clear message of loyalty and partnership to its greatest ally.
The move is expected to lower prices on American goods in the Israeli market, increase import volume, and drive competition that will benefit Israeli consumers. It also opens the door for expanded bilateral trade and investment, with American companies now enjoying unfettered access to Israeli markets across multiple industries.
Timing Matters
This announcement follows the historic military aid packages authorized by President Trump, who in 2025 restored and expanded U.S. arms sales to Israel totaling over $12 billion. It also aligns with Trump’s broader vision of deepening economic and security ties with America’s closest allies, while isolating Iran and dismantling its regional terror infrastructure.
The removal of tariffs reinforces Israel’s role as a reliable economic partner, technologically advanced market, and regional anchor of Western values. It further isolates Iran’s terror economy, which continues to rely on black-market networks and sanctions evasion.
Economic Patriotism Meets Strategic Policy
Finance Minister Smotrich praised the decision, calling it “a patriotic economic step that strengthens Israel’s alliance with the U.S. while helping Israeli families.” Minister Barkat added that the move would “turbocharge imports, increase supply, lower prices, and prove once again that strong national security must be supported by a thriving economy.”
In today’s world, where economic partnerships are just as crucial as defense alliances, Israel’s removal of tariffs on U.S. goods is both a smart financial move and a bold diplomatic signal. It ensures that the U.S.-Israel bond continues to deepen—strategically, militarily, and now economically.
