Israel's Prime Minister Benjamin Netanyahu met with President Donald Trump at the White House on Monday to discuss mounting trade tensions between the two nations.
According to New York Post, Netanyahu vowed to eliminate Israel's trade surplus with the United States and remove all trade barriers on American goods, as his country faces potential 17% tariffs under Trump's new "Liberation Day" levies policy.
The Israeli leader's commitment comes as Trump's administration implements sweeping tariff reforms affecting global trade partners. Netanyahu's promise aims to address the $7.4 billion trade deficit the US recorded with Israel in 2024, where American exports reached $14.8 billion while imports from Israel totaled $22.2 billion.
The European Union faces an even steeper 20% tariff under Trump's reciprocal formula. Trump indicated that the EU's proposal for "zero-for-zero" tariffs on industrial goods was insufficient, suggesting European purchases of American energy could help reduce their $235.6 billion trade deficit.
Japan's Prime Minister Shigeru Ishiba also contacted Trump on Monday, seeking to prevent a 24% tariff on Japanese goods. Trump emphasized that Tokyo must improve access for US automobiles and agricultural products in their market.
The White House reports that more than 50 countries have initiated talks to negotiate better trade terms. China, however, has taken an antagonistic stance by implementing retaliatory tariffs, prompting Trump to threaten duties exceeding 100%.
Netanyahu, 75, positioned Israel as a potential model for other nations in addressing trade imbalances with the United States. His conciliatory approach demonstrated Israel's willingness to rapidly restructure its trade relationship with America.
The Israeli Prime Minister stated during the Oval Office meeting:
We will eliminate the trade deficit with the United States. We intend to do it very quickly. We are also going to eliminate trade barriers … And Israel can serve as a model for many countries that ought to do the same. I'm a free trade champion, and free trade has to be fair trade, and I think that's basically the position you have put forward, Mr. President. We are going to eliminate the tariffs and rapidly.
Trump's response remained noncommittal despite Netanyahu's accommodating stance. He notably mentioned the substantial US aid to Israel, remarking, "We give Israel $4 billion a year. That's a lot. Congratulations, by the way, that's pretty good."
Financial markets continued their downward spiral for a third consecutive day as investors grappled with the implications of Trump's sweeping tariff policies. A false report suggesting a 90-day delay in tariff implementation briefly caused market volatility.
The planned East Room press conference between Trump and Netanyahu was canceled amid the market turmoil. Instead, both leaders addressed a smaller group of reporters in the Oval Office. Leaders from the United Kingdom, Taiwan, and South Korea have also initiated diplomatic efforts to negotiate more favorable trade terms with the White House.
Prime Minister Benjamin Netanyahu's White House visit represents a critical moment in US-Israel trade relations as the April 10 deadline for new tariffs approaches. The Israeli leader's pledge to eliminate trade barriers and address the bilateral deficit demonstrates the growing pressure on US trading partners to adapt to Trump's aggressive trade policies.
The success of Netanyahu's proposed trade reforms remains uncertain, as Trump has not yet committed to exempting Israel from the impending 17% tariff. The outcome of these negotiations could set a precedent for other nations seeking to avoid Trump's new tariff structure, while global markets continue to react nervously to the evolving trade landscape.
