Israel has removed all remaining tariffs on products imported from the United States, according to a joint statement released by the Prime Minister's Office, Finance Ministry, and Economy and Industry Ministry, Israel’s Calcalist reported.

The decision follows approval from the Finance Committee and was formalised by Economy Minister Nir Barkat's signature, amending the Trade Tariff and Protective Measures Order.

“Cancelling the tariffs on American goods is another step in the policy led by my governments for over a decade to open the market to competition, introduce diversity into the economy, and reduce the cost of living," Prime Minister Benjamin Netanyahu was quoted by The Jerusalem Post as saying.

The practical impact of the decision is expected to be limited, as most US imports have been tariff-free since the two countries signed a free trade agreement in 1985. The remaining tariffs primarily affected food and agricultural products, which will now become more affordable for Israeli consumers.

Finance Minister Bezalel Smotrich highlighted the strategic importance of the move, writing on his X account: “The current US administration presents a real opportunity to reshape the strategic economic relationship between our countries. This move will deepen our ties, reinforce the US as a key economic partner, and pave the way for stronger cooperation.”

Israel's tariff elimination comes at a notable moment, with the Trump administration preparing to announce a comprehensive tariff plan dubbed "Liberation Day." According to Globes, Trump is scheduled to unveil these measures at a White House Rose Garden press conference, with the tariffs taking effect immediately upon announcement.

Trump has justified his tariff strategy as creating “fairness” for the United States, claiming that many countries impose trade barriers harmful to American industry. The US president has also cited increased state revenue from tariff collection as a benefit to the federal budget.

With the US appearing poised to implement more protectionist measures, Israel’s decision to eliminate tariffs on all US products suggests that the Netanyahu administration may be seeking to further strengthen ties with Washington, thereby avoiding the harshest effects of the US administrations latest trade policy.

Of course, this move could also have significant implications for Prime Minister Benjamin Netanyahu, who will surely desire a strong relationship with the leader of the Western world as he continues to face political struggles on multiple fronts.

Of course, the economy is not the only factor at stake. Given the ongoing conflict with Hamas and renewed tensions in Lebanon, Israel may benefit from US backing from both an economic and security perspective.