Israeli Prime Minister Benjamin Netanyahu is scheduled to meet with President Trump at the White House on Monday, with recent U.S. tariff impositions expected to be a key topic.

Israeli Ambassador to the U.S. Yechiel Leiter stated that the meeting is crucial for addressing the return of hostages held by Hamas, the volatile situation in Syria, and threats from Iranian proxies, also mentioning that the newly implemented tariff policy will be part of the discussion. He highlighted Netanyahu being the first world leader to meet Trump regarding strengthening economic and trade ties during his current term.

Netanyahu’s previous meeting with Trump in Washington occurred on Feb. 4.

A 17% tariff on Israeli imports, comprising a 10% baseline applied to all countries on April 5 and an additional 7%, was announced on Wednesday and scheduled for implementation on April 9.

Alex Coman from the Holon Institute of Technology, warned that the tariffs could negatively impact exports of diamonds, high-tech products, and defense systems such as drones, potentially reducing income. He expressed surprise at the tariffs, noting that few existed previously and that Israeli Finance Minister Bezalel Smotrich had eliminated existing ones, expressing optimism for a reduction.

According to the Office of the United States Trade Representative, the total U.S. goods trade with Israel in 2024 was approximately $37.0 billion, with $14.8 billion in exports (up 5.8% from 2023) and $22.2 billion in imports (up 6.7% from the previous year).

The U.S. trade deficit with Israel in 2024 amounted to $7.4 billion, an 8.6% increase from 2023.

Reports indicate that the tariff calculation involved dividing the trade deficit ($7.4 billion) by the value of imports to the U.S. ($22.2 billion) and halving the result to arrive at 17%.

The tariff issue was discussed during a phone call between Trump and Netanyahu on Thursday, which also included Hungarian Prime Minister Viktor Orbán. Secretary of State Marco Rubio spoke with Netanyahu the following day, reaffirming U.S. support for Israel, according to a U.S. statement.

Trump’s tariff decision reportedly surprised Netanyahu, leading him to seek a reduction to 10%. Smotrich also issued an order to eliminate remaining Israeli tariffs on primarily agricultural goods imported from the U.S.

Jerusalem and Washington established a free trade agreement in 1985, the first of its kind for the United States, resulting in approximately 98% of goods being traded without tariffs since then.

Netanyahu and Trump will also address the conflict with Hamas in Gaza, efforts to secure the release of the 59 remaining hostages from the Oct. 7, 2023, attack, the new al Qaeda-linked leadership in Syria, the Iranian nuclear threat, and efforts to counter the International Criminal Court’s potential arrest warrants for Israeli leaders, according to the Prime Minister’s Office in Jerusalem.

Ariel Kahana from Israel Hayom, anticipates that Iran will be a primary topic, particularly concerning potential nuclear negotiations, and that Netanyahu will likely advise Trump on the matter.

Kahana also noted the U.S.’s reported deployment of a second THAAD anti-missile battery to Israel, in addition to existing equipment, suggesting coordination on this matter.

He expects discussions on the Gaza war, hostages, and Netanyahu’s attempts to lower tariffs. He also speculated on potential limits on Turkish President Erdogan, as both Israel and Turkey increase their presence in Syria, potentially leading to military conflict.

Netanyahu, departing Hungary on Sunday, emphasized the importance of his upcoming White House meeting with President Trump on Monday.

Netanyahu stated that he will be the first international leader to meet with President Trump on an issue of great importance to Israel’s economy, adding that this reflects the unique personal relationship and strong bond between the United States and Israel, which is crucial at this time.

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