Israel has indicated its interest in eliminating its trade deficit with the United States.
On Monday, Israeli Prime Minister Benjamin Netanyahu was the first foreign leader to meet in person with President Donald Trump since the White House announced a new series of substantial prices last week and sent global markets in a flesh. Trump’s plan included a reference rate of 10% on all countries and higher prices on countries that the White House considered “the worst offenders” in American trade relations. Israel, one of the main non-nato allies in the United States, faces a rate of 17%.
“We will eliminate the trade deficit with the United States,” Netanyahu told journalists at the Oval Office following a private meeting with Trump. “We intend to do it 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,” said Netanyahu, adding: “I am a free trade champion, and free trade must be a fair trade.”
In 2024, the United States exported $ 14.8 billion in Israel for $ 22 billion and imported $ 22.2 billion in Israel, totaling a trade deficit of goods of $ 7.4 billion for the year, an increase of 8.6% compared to 2023, according to American commercial data.
In 2023, the three main goods that Israel exported to the United States was diamonds, integrated circuits (also called micropuices) and broadcasting equipment, according to the economic complexity observatory.
In turn, the largest products that the United States exported to Israel the same year were diamonds, explosive ammunition and packaged drugs (mainly retail pharmaceutical products), according to data compiled by the OEC.
For his part, Trump told journalists during the appearance with Netanyahu that the United States would “perhaps” its prices against Israel.
“Well, we are talking about a whole new job-maybe not, maybe not. Now, don’t forget that we help Israel a lot. You know, we give Israel $ 4 billion a year. It is a lot,” Trump said, referring to the military aid that the United States sends to Israel.
The United States and Israel have implemented a free trade agreement since 1985, and the United States is the largest trading partner in Israel.
Last week, in what could have been an effort to avoid new prices from Trump, Netanyahu wrote in an article on X – just a day before the announcement of Trump’s “Liberation Day” – that he would eliminate all the remaining prices on American products.
Netanyahu said after the meeting with Trump that Israel will also work to “eliminate trade barriers” between the two countries.
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