Photo: Depositphotos
8 April – Washington/Jerusalem – Israeli Prime Minister Benjamin Netanyahu has begun an urgent visit to the United States for talks with President Donald Trump amid escalating trade tensions between the two countries. After a visit to Budapest, Netanyahu arrived in Washington, D.C., with his wife, Sarah Netanyahu, and his military secretary, Major General Roman Hoffman.
The first negotiations are with the US trading bloc
Shortly after his arrival, the Israeli prime minister met with US Secretary of Commerce Howard Lighthizer and US Trade Commissioner Jamison Greer. The main issue was the 17% duty on Israeli goods imposed by Washington as part of Trump’s new tariff policy, which came into effect on 9 April.
“I am grateful to President Trump for the invitation. We are the first to talk to him about tariffs. This is a testament to the special relationship between Israel and the United States,” Netanyahu said before the meeting.
Political tensions and diplomacy
The meeting with Trump, according to the Prime Minister’s office, covered several sensitive topics:
– US customs policy towards Israel;
– The return of Israeli hostages from Gaza;
– Iranian threat;
– Israel’s relations with Turkey;
– opposition to the International Criminal Court.
The visit was supposed to take place in late April after Passover, but was urgently agreed upon after an unexpected call from Trump during Netanyahu’s visit to Hungary. According to Axios, it was then that Hungary’s position on withdrawing from the ICC, as well as new duties, were discussed.
Due to the visit, the court hearing in Netanyahu’s case was postponed from 7 to 9 April. Defence Minister Yisrael Katz’s trip to the United States was also cancelled, as both leaders cannot leave the country at the same time during the war.
A blow to the Israeli economy
The US customs policy will primarily affect Israeli goods, which account for 26% of all exports to the US. Who will be affected:
– High-tech products (chips, equipment) – ~20%;
– medical and optical equipment – ~13%;
– diamonds, pharmaceuticals, chemicals, plastics, aviation – ~24%.
Small exporters, for whom the US is the only market, remain particularly vulnerable. The trilateral agreements with Egypt and Jordan on duty-free supplies of joint products to the US market are also under threat.
Although Israel has cancelled all residual duties on imports from the US, this has not stopped the US side. The Trump administration also sees VAT, car taxes, currency manipulation and other “unfair advantages” as a problem.
“Attempts to explain to Trump that there was a mistake have so far failed,” Israeli officials say.
This visit could be pivotal to Israel’s economic future – or, on the contrary, it could perpetuate the trade crisis for a long time.
