Netanyahu Pledges To Eliminate Israel’s Trade Deficit With U.S. In Hopes Of Avoiding Tariffs

Israeli Prime Minister Benjamin Netanyahu announced that Israel will eliminate its trade deficit with the United States, which has been the basis for the 17% tariff the White House announced would be placed on Israel.

“We will eliminate the trade deficit with the United States. We intend to do it very quickly, we think it is the right thing to do and we’re also going to eliminate trade barriers that have been put up unnecessarily.”

Netanyahu, calling himself a “free trade champion,” said that Israel can “serve as a model for many countries who ought to do the same.”

The tariff reportedly came as a surprise to Israeli leaders, who had hoped that removing all tariffs from American goods would help ease the risk of economic turmoil amid a year-and-a-half-long war that has strained the nation’s struggling economy.

Netanyahu is the first world leader to meet with Trump over the new tariff policy. The meeting is the second time Trump has hosted Netanyahu at the White House in less than three months.

Netanyahu also met with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer at Blair House in Washington, D.C on Sunday. His office described the meeting as “warm, friendly and productive.”

More than 50 nations have reached out to the United States to negotiate trade deals following last week’s tariff announcement, White House National Economic Council Director Kevin Hassett revealed Sunday.

A White House official told The Daily Wire that the “Liberation Day” tariffs account for various “non-trade barriers,” including intellectual property transfer or theft, which the source said was specific to Israel. However, in the days following the announcement, it has been reported that the White House calculated most tariffs based on the U.S. trade deficit divided by the value of imports from each country.

The Trump administration announced that the baseline 10% tariff on all countries would take effect on April 5, with additional amounts — including a 7% tariff on Israel — scheduled to take effect on April 9.

The United States-Israel Free Trade Agreement, which took effect in 1985, nearly eliminated tariffs between the countries by 1995. The United States is currently Israel’s largest trading partner, with total goods trade estimated to be valued at $37 billion in 2024.

In 2024, U.S. imports from Israel stood at $22.2 billion, while exports were estimated at $14.8 billion, according to the U.S. Trade Representative. America’s trade deficit with Israel stood at $7.4 billion in 2024.

During the meeting, the two leaders also spoke about the 59 hostages still in Hamas captivity, Turkey’s effort to grow its influence in Syria, and the Trump administration’s Saturday meeting with representatives of Iran regarding its nuclear program.

“Doing a deal will be preferable to doing the opposite,” Trump said.

Prior to Netanyahu’s arrival Trump reportedly had a call with French President Emmanuel Macron, Egyptian president Abdel Fattah El-Sisi, and Abdullah II of Jordan.