Netanyahu’s Predicament: A Tariff Tango with the U.S.
In a strategic maneuver to sidestep impending tariffs from President Trump, Israel’s government has declared it will eliminate all remaining tariffs on American imports. This decision comes as Trump is poised to unveil a new series of levies on Wednesday.
Since 1985, Israel and the United States have enjoyed a free-trade agreement that largely exempts American goods from Israeli tariffs. On Tuesday, Prime Minister Benjamin Netanyahu framed the decision to abolish these tariffs as a step towards enhanced trade liberalization.
This excerpt is from Matthew Mpoke Bigg’s article, “On Eve of Trump’s Tariffs Announcement, Israel Says It Will Lift All Duties on U.S. Imports,” New York Times, April 2, 2025.
Poor Benjamin Netanyahu. One can only imagine his confusion as he interpreted Donald Trump’s call for reciprocal tariffs — surely, he thought, this meant an even playing field? Yet it appears Trump’s concept of reciprocity is more akin to a one-sided game, where the U.S. imposes steep tariffs regardless of other countries’ policies.
However, there’s a silver lining. The decision to eliminate tariffs on all U.S. imports is a commendable move that stands to benefit the majority of Israelis, potentially nudging their real GDP upwards. It would serve the Israeli populace even better if Netanyahu took the additional step of cutting tariffs on all imports to zero, fostering an even more competitive market.
