[By Guancha Observer Network, Wang Kaiwen] On April 2 local time, US President Trump declared "war" on the world on what he called "Liberation Day". The White House announced a 10%-49% "reciprocal tariff" on 185 countries and regions globally that day, and even America's close allies were not spared. Among them, Israeli goods will be subject to a 17% tariff.

It is worth noting that just one day before Trump announced the tariff measures, Israel announced the removal of all remaining tariffs on US imports. In the eyes of American media, this move was obviously aimed at avoiding attacks from Trump. However, this action did not earn the US' "mercy".

On April 1 local time, Israeli Prime Minister Netanyahu posted on social platform X: "Today, we have removed all tariffs on products imported from our largest trade partner in the United States."

Netanyahu stated that this was another step taken by the Israeli government as part of its policy to "open market competition, introduce economic diversity, and reduce living costs". He said that apart from benefiting the Israeli market and its citizens, this move could further strengthen the alliance and relations between Israel and the United States.

"We will continue to work towards reducing barriers and tariffs to strengthen our special relationship with the United States," Netanyahu said.

In the comments under this post, Musk, who leads the US government efficiency department, posted both the US flag and the Israeli flag.

Screenshot of Netanyahu's X account

According to Reuters, the Israeli prime minister's office stated that the removal of tariffs still requires final approval from Israel's economy minister Nechemia Barakat and the parliamentary finance committee, but it is expected that both departments will approve. At that time, "all tariffs on imports from the United States will be canceled."

Barakat stated that the removal of tariffs is a supplement to bilateral trade relations and "will promote further economic cooperation in the future."

The United States is Israel's largest trading partner and closest ally. According to data from the US Trade Representative's Office, the estimated bilateral trade volume between the US and Israel in 2024 is $37 billion, with the US having a $7.4 billion trade deficit in goods with Israel, an increase of 8.6% compared to 2023.

The two countries signed a free trade agreement 40 years ago, and currently about 98% of US imports into Israel are exempt from tariffs. The Israeli Ministry of Finance stated that Israel collects approximately 42 million new shekels (about $11.3 million) in tariffs annually on US imports, mainly from the agricultural sector.

According to reports, Israel's finance minister Smotrich previously signed an order to cancel tariffs on US imports and wrote to Barakat and Agriculture Minister Avi Ditich, requesting their support for this measure. Smotrich also urged ministers to quickly coordinate with relevant US departments to avoid potential consequences of US tariffs on Israeli goods.

"Completely removing tariffs on US imports is an important step to protect Israel's economy during a sensitive period and strengthen economic ties with our most important ally, the United States," Smotrich said.

Israel announced the cancellation of all remaining tariffs on US imports before April 2. According to The New York Times, this was clearly done to ensure that the country would not be affected by Trump's new round of tariff measures.

However, on April 2, Trump announced "reciprocal tariffs" in which Israeli goods are still subject to a 17% tariff. Israeli media Ynetnews pointed out that this has raised concerns about Israel's economy and trade relations with the US.

"The Israeli industrial sector is deeply concerned about President Trump's decision to impose new tariffs on Israel. We are trying to understand the reasons behind this move," said Ron Tomer, chairman of the Israel Manufacturers Association.

According to US calculations, Israel imposes a 33% tariff on US imports. Tomer said, "The claim that Israel imposes a 33% tariff on US goods is unclear, and a 17% response seems unreasonable."

He warned that tariffs may harm the interests of Israeli exporters, hurt employment in Israel, "this decision threatens Israel's economic stability, potentially hindering foreign investment, and weakening the competitiveness of Israeli companies in the US market."

This article is an exclusive contribution by the Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7488920793380848147/

Disclaimer: The views expressed in this article are those of the author alone. Please express your opinions by clicking the 'thumbs up' or 'thumbs down' button below.