The Positive Result of Threatening Tariffs

This is no April Fool's Day joke or spoof. It was announced today that Israel, in order to improve its special relationship with the United States, has cancelled ALL tariffs on American goods ahead of President Trump's promise to assess reciprocal tariffs on all trading partners.

 

Considering Israel is a leading supplier of all things tech-related, this is a big deal.

"In addition to the economic benefits for the economy and citizens of Israel, this move will allow us to further strengthen the alliance and ties between Israel and the United States," Prime Minister Netanyahu said in a statement. "We will continue to work to remove barriers and tariffs and to reinforce our special relationship with the United States."

As reported by Fox Business, the US is Israel's largest trading partner and closest ally, with bilateral trade worth $34 billion in 2024, according to the Office of the United States Trade Representative.

Forty ÿears ago, the two countries entered into a free trade agreement, which has fallen a bit by the wayside in recent years. But Israeli officials said this tariff reduction would apply to "a very limited number of products," chiefly US food and agricultural imports.

It is a restart of what has been a good and beneficial relationship for both sides. And it shows that the Israeli Prime Minister respects the current American President and takes him at his word.

In this case, there will be a reciprocal non-tariff response by the Trump Administration. Which benefits both countries.

And that, friends, is how it is done.