Tel Aviv [Israel], April 2 (ANI/TPS): At the directive of Prime Minister Benjamin Netanyahu, Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat, Israel has cancelled all of the customs duties - tariffs - that have been levied until now on products from the US, Israel's largest trading partner.

After the approval of the Knesset Finance Committee and the Economy and Industry Minister's signature on the order, the amendment to the order regarding trade levies and protective measure will take effect and customs duties on all imports from the US will be cancelled.

The US is Israel's closest ally and its most significant trading partner. In 2024, the export of goods to the US stood at USD 17.3 billion, while the export of services was estimated at USD 16.7 billion.

Israel's government explained that the 1985 free trade agreement with the US has led to the fact that the overwhelming majority (approximately 99 per cent) of goods imported from the US are already fully exempt from customs duties. Therefore, the reduction in customs duties will begin on a very limited number of products, in the category of imported food and agricultural products from the US.

'The reduction in customs duties will, in effect, expand the US-Israel trade agreement and strengthen bilateral strategic relations,' the Prime Minister's Office, Finance Ministry and Economy and Industry Ministry said in a joint statement.

The reduction also entails an assurance to Israeli consumers in the form of a possible reduction in the cost of living with the anticipated expansion in imports of food and agricultural products from the US, which will benefit from a zero customs rate. (ANI/TPS)