At the White House

Netanyahu in Trump's court: face-to-face on Iran and tariffs

From the Israeli premier plan to contain Tehran and its allies. On technology Israel fears the backlash of US tariffs, its leading trading partner

by Luca Veronese

 Donald Trump e Benjamin Netanyahu alla Casa Bianca

3' min read

3' min read

They also discussed trade tariffs, but in the meeting at the White House, Donald Trump and Benjamin Netanyahu focused mainly on Iran, the war in Gaza, and tensions in the Middle East.

The Israeli PM again sought Trump's support, on economic issues as on the war against Hamas and Iran-backed armed groups. "There is a special personal bond between us, just as there is a special bond between the United States and Israel, which is even more vital at this time," Netanyahu said, stressing that he was the first world leader to meet Trump in person after the US tariffs announcement.

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Eighteen months after the start of military operations in Gaza, and while protests against the government are multiplying in the Israeli squares, the two leaders spoke again about the possibilities of reaching a truce in the Strip, to facilitate the release of the hostages still in the hands of Hamas. "We will certainly talk about the hostages, the completion of the victory in Gaza and, of course, the tariff regime that has been imposed on Israel. I hope to make a contribution in this matter. That is the intention,' Netanyahu said before boarding the state plane to Washington.

Trump is also using tariffs as a negotiating weapon with Israel, beyond trade. And before meeting the Israeli premier, the US president had a joint phone call with French President Macron, who is visiting Cairo, Egyptian President Al-Sisi and Jordan's King Abdullah.

In the Oval Office, the Israeli leader presented the US president with his plan to reach 'a good deal with Iran': Netanyahu supports an agreement that should lead to 'the complete dismantling of the Iranian nuclear programme, as happened in Libya', Israeli government officials said. Before seeing Trump, Netanyahu had a face-to-face meeting with the US special envoy for the Middle East, Steve Witkoff, at Blair House in Washington. To Witkoff himself and Trump, Netanyahu also raised the possibility that after razing Gaza, Israel might go so far as to annex areas of the occupied West Bank, despite the fact that the Palestinians consider the West Bank to be a central part of their future independent state.

Duties and trade had already been discussed a few hours earlier, when Netanyahu, immediately after arriving in Washington with his wife Sara, met - in a conversation described as "warm and productive" - US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer: on the table was the Israeli request to reach an agreement on trade after the US announced 17% duties on imports of Israeli goods.

The US is Israel's main trading partner: it absorbs 32% of Israeli exports (worth about $18 billion). While for the US, the Israeli market is very marginal: in fact, it is worth only 0.73% of American foreign sales (amounting to about 15 billion dollars). More than the quantity of trade, however, the ties between the two countries on security and intelligence technologies and weapons count.

The Manufacturers Association of Israel estimates that the tariffs will cost Israel about $3 billion in exports per year and lead to the loss of 26,000 jobs in sectors including biotechnology, chemicals, plastics and electronics. "The damage," said Ron Tomer, president of the business association, "will not stop at exports, it will scare off investors, encourage companies to leave Israel, and undermine our image as a global centre of innovation.

Amid global uncertainty, the Central Bank of Israel decided to keep interest rates unchanged at 4.5% for the tenth consecutive meeting. However, it lowered its growth forecast to 3.5% for this year, from the previous 4%.

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