Key points
- Outcome may influence other leaders’ approach to Trump tariffs
- US had $7.4b goods trade deficit with Israel last year
- Talks covered Gaza war, hostages and Iran tensions
ISLAMABAD: Israeli Prime Minister Benjamin Netanyahu has promised to eliminate Israel’s trade surplus with the United States during his visit to Washington, following Donald Trump’s announcement of reciprocal tariffs.
“We intend to do it very quickly,” Netanyahu said as he sat beside Trump in the White House Oval Office. “We think it’s the right thing to do, and we’re going to also eliminate trade barriers.”
US President Donald Trump’s tariff has sent global markets tumbling with no signs of recovery.
Markets across Asia and Europe crashed at their very opening on Monday as trading sessions had to be suspended.
“We think it’s the right thing to do, and we’re going to also eliminate trade barriers.” — Israeli Prime Minister Benjamin Netanyahu
Netanyahu was the first foreign leader to meet with Trump at the White House since the US president announced a sweeping tariff policy last week.
The United States, Israel’s closest ally and largest single trading partner had a $7.4 billion goods trade deficit with Israel, according to Reuters news agency.
President Trump has been a remarkable friend of the State of Israel. 🇮🇱🇺🇸
He has been a great champion of our alliance. We are working together to bring our hostages home – all of them.@realDonaldTrump pic.twitter.com/8IgMb6YYbI
— Benjamin Netanyahu – בנימין נתניהו (@netanyahu) April 7, 2025
Under Trump’s new policy, Israeli goods face a 17 per cent US tariff.
When asked if his administration planned to reduce tariffs on Israeli goods, Trump made no promises.
“We’ve been ripped off and taken advantage of by many countries over the years, and can’t do it anymore,” he said.
Shock announcement
During the Oval Office meeting, Trump also announced direct nuclear talks with Iran.
Trump said he was hopeful of reaching a deal with Tehran, but warned that the Islamic republic would be in “great danger” if the talks failed.
Hours later Tehran confirmed discussions were set for Saturday in Oman, but stressed they were “indirect” talks.
“Iran and the United States will meet in Oman on Saturday for indirect high-level talks,” Iranian Foreign Minister Abbas Araghchi said on social media platform X.
“It is as much an opportunity as it is a test,” he added. “The ball is in America’s court.”
Another deal
Netanyahu, meanwhile, said the United States and Israel were working on another deal to free hostages from war-torn Gaza, AFP reported.
“We’re dealing with the Iranians, we have a very big meeting on Saturday and we’re dealing with them directly,” Trump told reporters after a meeting that was meant to focus on Israel’s bid to avoid US tariffs.
Trump did not say where the talks would take place, but insisted they would not involve surrogates and would be at “almost the highest level.”
