Jerusalem — Israel is in negotiations with its key ally, the United States, to ease recently imposed tariffs introduced by former U.S. President Donald Trump, according to Finance Minister Bezalel Smotrich.

The new tariffs, part of Trump’s sweeping "Liberation Day" trade policy unveiled this week, have affected both adversaries and allies. Ironically, the announcement came just one day after Israel eliminated its remaining customs duties on U.S. imports — a move now facing domestic criticism.

Despite its close ties with Washington and status as a major recipient of U.S. military aid, Israel was not spared. Trump’s policy placed a 17 percent tariff on Israeli goods entering the U.S. market.

“The Ministry of Finance is maintaining an ongoing dialogue with the U.S. administration with the aim of reducing the scope of the tariffs and minimizing their impact on Israeli industry,” Smotrich posted on X (formerly Twitter) on Thursday.

Smotrich had met with U.S. Treasury Secretary Scott Bessent during a visit to Washington in March. On Tuesday, he announced that Israel had fully removed customs duties on U.S. imports, covering the final one percent of goods still subject to such charges.

Following the Trump administration’s tariff announcement, Israel’s decision to lift its own duties came under sharp criticism from political opponents.

“Smotrich rushed to remove all tariffs on U.S. imports, only to receive 17 percent tariffs on Israeli exports in return. Genius,” wrote centrist lawmaker Vladimir Beliak on X.

The Manufacturers Association of Israel (MAI) expressed shock at the development, saying it had not anticipated the move.

“It appears the imposition of the customs duty may be linked to the U.S. trade deficit with Israel,” the organization said in a statement.

The MAI warned that the new tariffs present a significant challenge for Israeli industries and stated it was in contact with both U.S. and Israeli authorities in an effort to secure an exemption or reduction.

According to the U.S. Department of Commerce, the United States recorded a trade deficit of approximately $7 billion with Israel in 2024.