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 satisfy 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 international markets right into a tailspin. Trump’s plan included a baseline 10% tariff on all nations and better tariffs on nations the White Home thought of “the worst offenders” in US commerce relations. Israel, one of many US’s main non-NATO allies, faces a 17% tariff.

“We are going to eradicate the commerce deficit with the USA,” Netanyahu instructed reporters within the Oval Workplace following a non-public assembly with Trump. “We intend to do it in a short time. We expect it is the best factor to do. And we’ll additionally eradicate commerce limitations.”

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

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

In 2023, the three fundamental items that Israel exported to the US had been diamonds, built-in circuits (also referred to as microchips), and broadcasting gear, in response to the Observatory of Financial Complexity.

In flip, the most important merchandise the US exported to Israel the identical yr had been diamonds, explosive ammunition, and packaged medicaments (basically retail pharmaceutical merchandise), in response to information compiled by OEC.

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

“Effectively, we’re speaking about a complete new commerce — possibly not, possibly not. Now, do not forget we assist Israel rather a lot. You already know, 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 publish 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 “eradicate commerce limitations” between the 2 nations.