Israel in talks with US to reduce Trump tariffs

JERUSALEM: Israel is in talks with its main ally the United States to reduce tariffs imposed by President Donald Trump as part of a global salvo, according to the finance minister.

Trump hit friends and foes alike with his sweeping “Liberation Day” tariffs this week, making his announcement just a day after Israel lifted all of its remaining customs duties on US imports.

Trump reserved some of the harshest duties for major trade partners, while goods from Israel, a top beneficiary of US military aid, were hit with a 17 percent tariff.

“The Ministry of Finance is maintaining an ongoing dialogue with the US administration with the aim of reducing the scope of the tariffs and reducing their impact on Israeli industry,” Finance Minister Bezalel Smotrich wrote on X on Thursday.

Smotrich had met with his US counterpart Scott Bessent in Washington in March.

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On Tuesday, he announced Israel’s lifting of all remaining duties on US imports, affecting the one percent of American goods that were still subject to them.

After Trump announced his tariffs, the Israeli executive faced harsh criticism over its lifting of its own duties.

“Smotrich rushed to remove all tariffs on imports from the US to Israel, and in response received 17 percent tariffs on imports of goods from Israel to the US. Genius,” centrist Israeli lawmaker Vladimir Beliak wrote on X.

Israel’s Manufacturers Association (MAI) said Trump’s tariff announcement had taken it completely by surprise.

“It appears that the imposition of the customs duty is probably related to the US trade deficit with Israel,” the body said in a statement.

In a separate statement on Thursday, the MAI said the decision posed “a major challenge” to Israel’s economy.

It also said it was in contact with US and Israeli authorities “in order to guarantee Israel’s exemption and/or reduce the taxes imposed”.

In 2024, the United States had a trade deficit with Israel of some $7 billion, according to data from the US Department of Commerce.