【Washington D】Meeting between Netanyahu and Trump: Israel Aims to Eliminate Trade Deficit and Strengthen Cooperation

by

Editor’s Note

This article reports on Israeli Prime Minister Benjamin Netanyahu’s commitment to reducing Israel’s trade deficit with the United States, a topic of renewed focus following the U.S. announcement of a 17% tariff on Israeli goods. The reported deficit for 2024 stands at $7.4 billion.

Netanjahu bemüht sich darum, Handelsbarrieren mit der USA abzubauen.
Israel Commits to Reducing Trade Deficit with US

Israeli Prime Minister Benjamin Netanyahu stated that Israel will reduce its trade deficit with the United States.

Netanyahu met with Trump after the US announced it would impose a 17 percent tariff on Israeli goods.

The trade deficit between the US and Israel amounted to $7.4 billion in 2024, an increase of 8.6 percent compared to 2023.

Netanyahu’s Meeting with Trump

Israel aims to eliminate its trade deficit with the United States. Israeli Prime Minister Benjamin Netanyahu signaled this on Monday during a personal meeting with US President Donald Trump.

Netanyahu is the first foreign head of state to meet Trump personally since the White House announced a new round of significant tariffs last week, sending global markets into turmoil.

Trump’s plan included a base tariff rate of ten percent for all countries. Additionally, there are higher tariffs for countries the White House labeled as “the worst offenders” in US trade relations. Israel, one of the US’s most important non-NATO allies, faces tariffs of 17 percent.

“We will eliminate the trade deficit with the United States,” Netanyahu told reporters in the Oval Office after a private meeting with Trump. He further explained: “We intend to do this very quickly. We think it’s the right thing to do. And we will also eliminate trade barriers.”
“Israel can serve as a model for many countries that should do the same,” Netanyahu said. He added: “I am an advocate of free trade, and free trade must be fair trade.”
US May “Perhaps Not” Lower Tariffs

In 2024, the US exported goods worth $14.8 billion (approximately €13.5 billion) to Israel. The US imported goods from Israel worth $22.2 billion (approximately €20.2 billion). According to US trade data, this results in a total trade deficit of $7.4 billion (approximately €6.7 billion). Compared to 2023, this represents an increase of 8.6 percent.

In 2023, the three most important goods Israel exported to the US were diamonds, integrated circuits (also known as microchips), and broadcasting equipment. This was reported by the Observatory of Economic Complexity (OEC).

The main products the US exported to Israel in the same year were diamonds, explosive ammunition, and packaged medicines (essentially retail pharmaceutical products). This is based on data compiled by the OEC.

Trump, for his part, told reporters during the meeting with Netanyahu that the US “perhaps not” will lower its tariffs against Israel.

“Well, we’re talking about a whole new trade — perhaps not, perhaps not. But don’t forget, we help Israel a lot. We give Israel four billion dollars (approximately €3.6 billion) a year. That’s a lot,” Trump said. He was referring to the military aid the US provides to Israel.
Background and Context

The US and Israel have had a free trade agreement since 1985. The US is Israel’s largest trading partner.

Last week, Netanyahu wrote in a post on “X,” just one day before Trump’s announcement of tariffs on “Liberation Day,” that he would abolish all remaining tariffs on American goods — possibly in an effort to avoid new tariffs from Trump.

Netanyahu said after the meeting with Trump that Israel would also work towards the “elimination of trade barriers” between the two countries.

Full article: View original |
⏰ Published on: May 10, 2025