Israeli Prime Minister Benjamin Netanyahu introduced Monday on the White Home that Israel will erase its commerce deficit with the US, nevertheless it was not sufficient to instantly earn a reprieve from the sweeping tariffs President Donald Trump introduced final week.
Seated subsequent to Trump within the Oval Workplace, Netanyahu stated his authorities intends to remove the deficit “in a short time. We predict it’s the fitting factor to do. And we’re additionally going to remove commerce limitations.”
Trump replied, “Thanks, that’s very good.” However he gave no indication that the U.S. is prepared to again off the elevated duties, even on shut allies like Israel.
In reality, when Trump was requested if he would decrease the brand new 17 % tariff fee on Israel, as a result of kick in Wednesday morning, Trump stated “perhaps not,” including that the U.S. already provides Israel billions of {dollars} in help for protection and different functions.
Trump additionally stated the White Home was “not ” pausing the brand new tariffs, extra broadly, to permit for negotiations.
Netanyahu is the primary international chief to fulfill with Trump since he introduced the “reciprocal tariffs” final week. Netanyahu additionally met with U.S. Commerce Consultant Jamieson Greer and Commerce Secretary Howard Lutnick on Sunday night.
Israel is one among 60-odd buying and selling companions that face a stepped-up responsibility on imports beneath the reciprocal tariff system, which the Trump administration decided primarily based on different nations’ commerce surpluses with the U.S.
Administration officers have stated 50 nations have reached out to barter on the brand new tariffs since they had been introduced. Trump spoke with Japanese Prime Minister Shigeru Ishiba earlier Monday. Treasury Secretary Scott Bessent later posted on X that the president had requested Bessent and Greer to launch commerce negotiations with Japan, which is dealing with a 24 % tariff beneath the brand new system. Trump stated within the Oval Workplace that he was centered on opening up the Japanese market to American cars and agriculture.
Netanyahu stated he acknowledges the place of the U.S. in combating unfair commerce from different nations. “I’m a free-trade champion and free commerce needs to be truthful commerce — and I believe that’s principally the place that you’ve got put ahead,” he stated to Trump.
The U.S. is Israel’s single largest buying and selling companion, and the nation is anticipated to lose about $2.3 billion from the U.S. tariffs, in accordance with the Producers Affiliation of Israel, with the most important hit coming to Israel’s expertise sector.
Israel has shared a free-trade settlement with the US since 1985.
“The results of tariffs on Israel are enormous,” stated Dalia Ziada, a senior fellow on the Jerusalem Heart for Safety and Overseas Affairs.