Israel canceling all tariffs on US products
Netanyahu said move aims to strengthen alliance with US
One tariff on everyone would level the playing field, former secretary of Commerce predicts
Former Secretary of Commerce Wilbur Ross unpacks the impact of tariffs worldwide on 'Kudlow.'
Israel announced on Tuesday that it is lifting all tariffs being imposed on U.S. products at the direction of Israeli Prime Minister Benjamin Netanyahu and other Israeli leaders.
Netanyahu said the move aims to cultivate more competition in the market, make the economy more diverse and reduce the cost of living for the people of Israel.
"In addition to the economic benefits for the economy and citizens of Israel, this move will allow us to further strengthen the alliance and ties between Israel and the United States," Netanyahu said in a statement. "We will continue to work to remove barriers and tariffs and to reinforce our special relationship with the United States."
Israel announced the plan in a joint statement from Netanyahu, Israeli Minister of Finance Bezalel Smotrich, and the country's Minister of Economy and Industry, Nir Barkat, just one day before President Donald Trump is set to levy reciprocal tariffs on U.S. trade partners.
WALL STREET FIRMS SEE RECESSION RISK RISING OVER TARIFFS, TRADE WAR
President Donald Trump greets Israeli Prime Minister Benjamin Netanyahu as he arrives at the White House on Feb. 4, 2025, in Washington, D.C. (Chip Somodevilla/Getty Images / Getty Images)
The U.S. is Israel's largest trading partner and closest ally, with bilateral trade worth $34 billion in 2024, according to the Office of the United States Trade Representative.
US BUSINESS OWNERS PREPARE TO BENEFIT FROM TRUMP TARIFFS, BOOST ‘MADE IN AMERICA’ OPERATIONS
The two allies signed a free trade agreement about 40 years ago, a deal that made around 99% of goods from the U.S. tax-free.
In an aerial view, operations are seen at the Houston Port of Authority in Houston, Texas. President Donald Trump has announced that he will be imposing a 25% tariff on all foreign steel and aluminum imports into the United States. (Photo by Brandon Bell/Getty Images / Getty Images)
Israeli officials said this tariff reduction would apply to "a very limited number of products," chiefly U.S. food and agricultural imports.
"The current administration presents a real opportunity to shape a new strategic economic future for the two countries while strengthening Israel's central role as an economic partner," said Smotrich.
How should investors respond to tariffs?
The Lonski Group founder John Lonski breaks down what is behind uncertainty in the market on 'Maria Bartiromo's Wall Street.'
Trump has said he will unveil a suite of tariffs on Wednesday, which he has dubbed "Liberation Day." Trump's promised tariffs will come on top of a 25% tariff on steel and aluminum imports, 25% tariffs on goods imported from Canada and Mexico, and a 20% tariff on goods from China.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
So far, Trump hasn't detailed Wednesday's tariffs, though he did announce a 25% tariff on auto imports earlier this week that is expected to take effect late Wednesday.
Fox News Digital's Anders Hagstrom contributed to this report.