US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu met at the White House on Monday, where the Israeli leader pledged to reduce Israel’s trade deficit with the United States. Still, even with Netanyahu’s assurances, Trump refused to commit to rolling back the recently imposed tariffs on Israeli goods.

In his statement to the press, seated next to POTUS Trump, Netanyahu said that his government will work to eliminate the US trade deficit. 

“We think it’s the right thing to do, We think it’s the right thing to do. And we’re also going to eliminate trade barriers,” Netanyahu remarked. 

He also called Israel a “free trade champion” and noted that “free trade has to be fair trade,” referring to the US’s concerns over other countries’ unfair trade practices.

Trump will not drop trade tariffs on Israel

As reported by Politico, when asked if he would reverse the 17% tariffs on Israeli imports as part of the policies introduced last week, President Trump replied, “Maybe not.” 

Israel lifted all duties on US imports in a last-minute attempt to avoid tariffs, but the US still imposed levies on the West Asian country.

Netanyahu was the first foreign leader to engage with Trump after announcing the “reciprocal tariffs” system impacting over 60 countries. He also held discussions with several top US trade officials, including US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, on the eve of the summit.

The Manufacturers Association of Israel estimated the country could lose approximately $2.3 billion due to the levies, and the country’s technology sector could suffer the most.

Ron Tomer, the association’s president, warned the Israeli Prime Minister in a letter about the damage to the country’s trade balance, saying the tariffs could severely affect Israel’s competitiveness, investment appeal, and technological edge. 

On the official note, the association asserted that tariffs on hardware exports could also damage the export of related software services within Israel’s high-tech sector.

“In light of the expected serious consequences, I call on you to take all diplomatic and economic measures at your disposal to prevent the imposition of taxes,” Tomer wrote.

Hostage negotiations are a priority for Netanyahu

Aside from trade talks, Netanyahu reportedly used the summit to discuss the release of hostages held by the Islamic Resistance Movement in Palestine, popularly known as Hamas. 

Still, Israel has Trump’s support on the matter and has recommended the US government issue financial aid to Israel, noting that America provides Israel with approximately $4 billion annually. 

“We give Israel billions of dollars a year. Billions. It’s one of the highest of anyone. We give a lot of countries money, you wouldn’t believe it. We take good care of our friends, and we don’t take care of our enemies,” he reckoned.

Room for other countries to negotiate

Since April 2, the White House has reportedly been inundated with diplomatic outreach, with officials confirming that around 50 countries have initiated contact to seek exemptions or renegotiate terms. On Monday, President Trump spoke with Japanese Prime Minister Shigeru Ishiba.

Later that day, Treasury Secretary Scott Bessent announced via social media that Trump had instructed him and US Trade Representative Greer to begin formal trade talks with Japan. Tokyo, under the new system, is now subject to a steep 24% tariff, one of the highest rates imposed.

Following a very constructive phone discussion with the Government of Japan, @POTUS @realDonaldTrump has tasked me and @USTradeRep to open negotiations to implement the President’s vision for the new Golden Age of Global Trade with @JPN_PMO Shigeru Ishiba and his Cabinet. https://t.co/oSXTh5ONOe

— Secretary of Treasury Scott Bessent (@SecScottBessent) April 7, 2025

Speaking from the Oval Office, Trump propounded that opening Japan’s markets to American-made cars and agricultural goods would top the demand list in the negotiations. 

“We’re going to make sure our farmers and automakers get a fair shake,” the president concluded.

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