Israeli Prime Minister Benjamin Netanyahu is scheduled to meet with President Donald Trump at the White House this coming Monday. Their discussions will prominently feature Washington’s recent global tariffs.
Prior to the highly anticipated meeting, Trump shared a message on Truth Social, urging patience regarding tariffs: “The United States has an opportunity to implement changes that should have been made decades ago. Stay strong, courageous, and patient, and greatness will follow!”
Israel’s Ambassador to the U.S., Yechiel Leiter, emphasized the importance of the meeting, stating, “This comes at a crucial time concerning various key issues, including the efforts to return hostages held by Hamas, the instability in Syria, and threats from Iranian proxies.”
Leiter also noted, “The newly implemented tariff policy will be a significant topic. Netanyahu was the first world leader to visit Trump during his second term, and he continues to be the first leader to discuss strengthening economic ties and addressing trade relations with the president.”
Netanyahu’s last meeting with Trump took place on February 4.
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In a post on Truth Social via X on Monday, Trump remarked, “Oil prices are down, interest rates are down (the slow-moving Fed should lower rates!), food prices are down, and there is no inflation. The U.S. is generating billions weekly from tariffs imposed on other countries.”
On April 9, a 17% tariff on goods imported from Israel was scheduled to take effect, which included a 10% baseline that began on April 5.
Concerns have been raised about the potential impact of these tariffs on exports, particularly for diamonds and high-tech defense systems like drones. Alex Coman, a value-creation expert at the Holon Institute of Technology, stated, “These tariffs were unexpected, and prior to this decision, there were minimal tariffs imposed. Israeli Finance Minister Bezalel Smotrich had previously eliminated many of them, so I remain optimistic that these new tariffs will be reduced.”
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According to the Office of the United States Trade Representative, U.S. total goods trade with Israel reached an estimated $37.0 billion in 2024, which included $14.8 billion in exports—an increase of 5.8% from 2023. Additionally, U.S. imports from Israel totaled $22.2 billion, up 6.7% from the previous year.
The U.S. trade deficit with Israel was recorded at $7.4 billion in 2024, representing an 8.6% increase over 2023.
The Trump administration calculated the tariff by dividing the trade deficit ($7.4 billion) by the value of imports to the U.S. ($22.2 billion), effectively halving the figure to arrive at the 17% rate.
During a phone call on Thursday that included Hungarian Prime Minister Viktor Orbán, Trump and Netanyahu discussed these matters. Following this, Secretary of State Marco Rubio also communicated with the Israeli premier to reinforce U.S. support for Israel.
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The unexpected tariff decision caught Netanyahu by surprise, prompting him to initiate negotiations to reduce it to 10%. Smotrich also signed an order to eliminate remaining Israeli tariffs on certain agricultural imports from the U.S.
Since the signing of a free trade agreement in 1985—the first of its kind for the United States—approximately 98% of goods have been traded tariff-free between the two nations.
Besides tariffs and trade discussions, Netanyahu and Trump will address the ongoing conflict against Hamas in the Gaza Strip, efforts to release the 59 remaining hostages taken during Hamas’ attack on October 7, 2023, Turkey’s military involvement in Syria, the Iranian nuclear threat, and the International Criminal Court’s arrest warrants for Israeli leaders, as stated by the Prime Minister’s Office in Jerusalem.
Ariel Kahana, a senior diplomatic correspondent for the Israel Hayom daily, noted, “The primary topic will be Iran, as nuclear negotiations seem imminent. Netanyahu will likely want to offer precautions to Trump ahead of these discussions.”
Kahana added, “Reports indicate the U.S. is sending a second THAAD anti-missile battery to Israel, in addition to other military supplies, which will require coordination between the two countries.”
“They will also discuss the Gaza conflict, the hostages, and the tariffs, which Netanyahu aims to reduce. Regarding Turkey, I expect Netanyahu to request Trump to impose limits on President Recep Tayyip Erdogan. As both Israel and Turkey are expanding their activities in Syria, tensions could escalate into a direct military confrontation,” Kahana concluded.
Upon departing Hungary on Sunday, Netanyahu expressed the significance of his upcoming meeting with Trump at the White House, stating, “I am the first international leader to meet with President Trump regarding this critical issue for Israel’s economy. Many leaders are eager to discuss their own economic matters, reflecting the unique bond and relationship between the U.S. and Israel, which is so essential at this moment.”
