On April 1, 2025, the Israeli government announced the abolition of all duties on the US imported goods. This decision has become part of strategic efforts to further strengthen the economic relations between the two countries. The US is the largest trading partner for Israel, and this decision has no doubt far -reaching economic consequences.
Back in 1985, Israel signed a free trade agreement with the United States, which already envisaged significant liberalization of customs exchange. According to this Agreement, almost 99% of all US goods were exempt from duties. However, there was a certain list of products for which imported imports, in particular in the category of food and agricultural goods.
After the cancellation of duties, all categories of goods from the United States, including agricultural products and food products, will be imported into Israel without additional customs duties. The country's authorities hope that this reduction in duties will reduce the cost of living for Israeli consumers, as increasing imports of US goods can contribute to more affordable prices.
This decision also strengthens strategic relations between Israel and the US. Common economic interests continue to strengthen the partnership, and the decrease in barriers for trade can stimulate the increase in bilateral trade. US companies will access the even larger market, while Israel wins from the ability to import cheaper and quality goods.
The cancellation of duties is expected to be gradually realized in the coming weeks, after which the full effect of this change will be obvious. The office of Israeli Prime Minister also emphasized that such a solution is an important step towards the further integration of the Israeli economy into global trade and strengthening economic cooperation with the United States.
