Exports Between Israel and US As Netanyahu Needs to Axe Commerce Deficit

Israel has signaled curiosity in eliminating its commerce deficit with the US.

On Monday, Israeli Prime Minister Benjamin Netanyahu was the primary international chief to fulfill in particular person with President Donald Trump for the reason that White Home introduced a brand new spherical of considerable tariffs final week and despatched world markets right into a tailspin. Trump’s plan included a baseline 10% tariff on all international locations and better tariffs on international locations the White Home thought-about “the worst offenders” in US commerce relations. Israel, one of many US’s main non-NATO allies, faces a 17% tariff.

“We’ll get rid of the commerce deficit with the US,” Netanyahu advised reporters within the Oval Workplace following a non-public assembly with Trump. “We intend to do it in a short time. We predict it is the fitting factor to do. And we will additionally get rid of commerce limitations.”

“Israel can function a mannequin for a lot of international locations who should do the identical,” Netanyahu mentioned, including, “I am a free-trade champion, and free commerce must be honest commerce.”

In 2024, the US exported $14.8 billion price of products to Israel and imported $22.2 billion price of products from Israel, totaling a $7.4 billion items commerce deficit for the yr, an 8.6% improve from 2023, in keeping with US commerce information.

In 2023, the three predominant items that Israel exported to the US have been diamonds, built-in circuits (also called microchips), and broadcasting tools, in keeping with the Observatory of Financial Complexity.

In flip, the largest merchandise the US exported to Israel the identical yr have been diamonds, explosive ammunition, and packaged medicaments (basically retail pharmaceutical merchandise), in keeping with information compiled by OEC.

For his half, Trump advised reporters throughout the look with Netanyahu that the US will “possibly not” scale back its tariffs in opposition to Israel.

“Properly, we’re speaking about a complete new commerce — possibly not, possibly not. Now, remember we assist Israel rather a lot. , we give Israel $4 billion a yr. That is rather a lot,” Trump mentioned, referring to the navy help the US sends to Israel.

The US and Israel have had a free-trade settlement in place since 1985, and the US is Israel’s single largest buying and selling companion.

Final week, in what might have been an effort to keep away from new tariffs from Trump, Netanyahu wrote in a submit on X — simply in the future earlier than Trump’s “Liberation Day” tariff announcement — that he can be eliminating all remaining tariffs on American items.

Netanyahu mentioned after the assembly with Trump that Israel would additionally work to “get rid of commerce limitations” between the 2 international locations.