New US policy set to threaten competitiveness of Israeli exports of machinery and medical equipment, experts say, while potential damage to tech industry is limited

Israel and the U.S. signed a free trade agreement 40 years ago and around 98% of goods from the United States are now tax-free. The finance ministry noted that tariff collection from U.S. imports - mainly in the agricultural sector - stands at about 42 million shekels ($11.3 million) a year.

The goal of the move is to promote a zero-tariff policy between the countries and maintain positive trade relations with the US,” he added.