Netanyahu: "We will eliminate the trade deficit with the United States"

Netanyahu: "I can tell you that I said to the President a very simple thing: we will eliminate the trade deficit with the United States. We intend to do it very quickly. We believe it’s the right thing to do.

We’re also going to eliminate trade barriers—a variety of barriers that have been imposed unnecessarily. And I believe Israel can serve as a model for many countries that should do the same.

I recognize the position of the United States, which says: we are allowing other countries to impose tariffs on us, but we are not imposing tariffs on them.

And, you know, I am a supporter of free trade, and free trade must be fair trade. And I think that is basically the position you have taken, Mr. President.

We are going to eliminate the tariffs—and quickly."

In April 2025, Israel announced the elimination of all remaining tariffs on products imported from the United States. This decision, led by Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich, aims to strengthen the economic relationship with its main ally and encourage competition in the domestic market.

The move comes in response to U.S. President Donald Trump's intention to impose 17% tariffs on Israeli imports as part of a broader trade policy targeting various trading partners. Despite Israel's proactive action, Trump did not commit to exempting the country from the new tariffs, noting the substantial financial aid the United States already provides to Israel.

Israel and the United States have maintained a free trade agreement since 1985, which already exempted approximately 98% of goods exchanged between the two countries. The recent tariff removal mainly affects agricultural and food products, representing about 42 million shekels (approximately $11.3 million) in annual customs revenue.

This initiative reflects Israel's commitment to free trade and its effort to adapt to the changing dynamics of U.S. trade policy, seeking to preserve and strengthen bilateral economic relations.