- Israel is pushing to update its decades-old trade deal with the U.S. to avoid new tariffs.
- Economy Minister Barkat said the new pact would boost data sharing and lift tariffs on U.S. farm goods.
- Trump’s administration announced new tariffs but gave a 90-day pause to allow for trade talks.
Israel is aiming to overhaul its 40-year-old free trade agreement with the United States, hoping to sidestep a fresh wave of tariffs from its closest ally. Economy Minister Nir Barkat shared the news on Monday, speaking at a conference in Jerusalem.
An updated deal, Barkat explained, would make it easier to share data across borders — something that could unlock major collaboration between the two countries. “We’ve already agreed to a bunch of U.S. requests,” Barkat told Reuters, mentioning that one big move includes dropping tariffs on American agricultural products.
A Longstanding Partnership Under Pressure
Most American goods are already tariff-free in Israel thanks to a 1985 trade deal. Today, the U.S. stands as Israel’s top trading partner, with two-way trade hitting around $37 billion in 2024, based on U.S. figures. Israel even ran a $7.4 billion surplus last year — a fact that’s not exactly gone unnoticed in Washington.
Trump’s Tariffs Stir the Pot
Earlier this month, President Donald Trump‘s administration announced sweeping new tariffs on dozens of countries — including a 17% tax slapped onto Israeli imports. But shortly after, they walked it back a bit, introducing a 90-day pause with a lower 10% baseline tariff to allow time for new trade talks.
Before those big tariff announcements, Israel had already signaled it was willing to scrap all remaining import duties on U.S. goods. Prime Minister Benjamin Netanyahu even made a trip to Washington to meet with Trump, clearly trying to smooth things over before tensions boiled too high.
