US Tariffs on Imports from Israel

Israel saw its tariff rate drop from 17% (IEEPA) to 10% (Section 122) following the Supreme Court's 6-3 ruling on Feb 20, 2026 — a 7-point reduction that strengthens the value of the US-Israel Free Trade Agreement, the oldest US FTA (signed 1985). US imports from Israel total approximately $25B annually, with technology, cybersecurity, diamonds, and pharmaceuticals as the leading categories.

The US-Israel FTA, signed in 1985, was the first bilateral FTA the US ever signed and eliminates MFN tariffs on virtually all qualifying goods. The reduction from 17% IEEPA to 10% Section 122 makes the FTA even more valuable, as the surcharge layer on top of FTA preferences has shrunk by 7 points. Israel is a major technology, defense, and cybersecurity partner. The diamond trade (Israel is a leading cutting and polishing center handling an estimated 40% of global polished diamonds) and pharmaceutical exports are significant trade categories.

Key Products Imported from Israel

Top imports include pharmaceuticals, diamonds and precious stones (Israel handles roughly 40% of global polished diamond trade), medical devices, telecommunications equipment, cybersecurity and defense technology, organic chemicals, and agricultural technology products. Israel's tech sector — particularly cybersecurity, AI, and autonomous systems — has become an increasingly large share of exports to the US.

Recent Changes

Feb 20, 2026: Supreme Court struck down IEEPA tariffs 6-3; Israel's rate dropped from 17% to 10% under Section 122 authority (effective Feb 24, expires ~July 24, 2026). A 7-point reduction that restores the US-Israel FTA's full competitive advantage. Section 232 steel and aluminum tariffs of 50% remain. The FTA — the oldest US bilateral trade agreement (1985) — now interacts with a lower surcharge layer, making Israeli goods more cost-competitive. Israel's technology and cybersecurity exports continue growing rapidly.

Tips for Importers

The US-Israel FTA eliminates the MFN base rate on qualifying goods, so the effective tariff is now just the 10% Section 122 rate (down from 17% IEEPA) — ensure you have proper FTA certificates of origin. Diamond classification matters significantly: rough diamonds typically enter duty-free, while cut and polished stones face varying MFN rates that the FTA can eliminate. Pharmaceuticals and medical devices generally enter at 0% MFN, making the 10% Section 122 the only layer. For cybersecurity and tech products, many electronics HTS codes carry 0% MFN rates. With Section 122 set to expire ~July 24, 2026, FTA-qualifying Israeli goods could face zero tariffs if the surcharge lapses.