U.S. President Donald Trump is to make a statement regarding retaliatory tariffs on several nations across the globe. Trump has called the day of the announcement 'Liberation Day' for America. These tariffs have been confirmed by the White House to be in effect right away. As a reaction to this, Israel has taken the decision to eliminate all tariffs on imports from America. Israeli Prime Minister Benjamin Netanyahu made the announcement on the 'X' platform.
Israel's Announcement on Tariff Removal
Netanyahu announced,
"We are eliminating all customs tariffs on goods we import from the United States, Israel's biggest trading partner, effective today. This move is part of our long-term policy of encouraging market competition, economic diversification, and lowering the cost of living. Eliminating tariffs will help Israeli citizens and enhance our economic relations with the U.S. We will continue to preserve our special relationship with the United States.
Political and Economic Consequences
A Chinese media source examined this move, contending that the elimination of tariffs must be considered from a political standpoint, not an economic one. The report pointed out that Israel and the U.S. have had a free trade agreement for 40 years, excluding 99% of U.S. imports from tariffs. The only exceptions have been agricultural products.
Based on trade statistics:
- $17.2 billion of Tel Aviv products were shipped to the U.S. in 2024.
- In the same timeframe, Israel had imported $9.2 billion worth of U.S. goods.
The decision has been described as a strategic one by Israel aimed at cementing its economic relationship with the United States, especially during periods of global trade tensions.
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