Israel Waves Off Custom Duties Ahead Of Trump's Tariff Announcement
Prime Minister Netanyahu noted that reducing tariffs will strengthen strategic relations between the two countries and may help reduce the cost of living in Israel.
Israel on Wednesday has cancelled import duties on all American goods, ahead of US President Donald Trump's announcement on reciprocal tariffs. The order was issued by Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat, under the directive of Israeli Prime Minister Benjamin Netanyahu.
"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 said in a post on X.
Prime Minister Netanyahu noted that reducing tariffs will strengthen strategic relations between the two countries and may help reduce the cost of living in Israel.
Donald Trump on Monday said that he will be 'very kind' to US trading partners when he makes announcement in his 'Liberation Day' speech regarding reciprocal tariffs. The US President is expected to roll out measures taken by his cabinet in the Rose Garden of the White House after Wall Street closes. Trump said he will deliver a new 'golden age' of US industry.
Since Trump has come to power, he has imposed various tariffs that include high duties on imports from Canada and Mexico. He has also announced sector-specific tariffs on metals and automobiles.
The uncertainty has shaken markets, prompted economists to cut their growth forecasts and forced central bankers to factor in the potential inflationary impact of import costs.
On Feb. 13, Trump had first announced his intentions to levy reciprocal tariffs on countries like India. The objective behind this decision is to match tariffs with its trade partners for “fairness”, Trump said. He has also imposed a number of duties on neighbours such as Canada, and hiked import taxes on products like aluminium and auto parts.
In a post shared on X on Wednesday, White House accused India, European Union, China and Canada of “ripping off” the US through the existing trade policies. The post cornered India over its imposition of “100% tariff on American agricultural products.”
