Netanyahu to discuss tariffs and Gaza war with Trump in US

Prime Minister faces possibility of 17 per cent tax on Israeli exports to the US

US President Donald Trump with Israeli Prime Minister Benjamin Netanyahu at the White House in Washington, on February 4, 2025. Reuters

Israeli Prime Minister Benjamin Netanyahu arrived in the US on Sunday night as Washington prepares its new tariff-focused approach to international trade.

The US is expected to implement sweeping "reciprocal" tariffs on nearly all of its trading partners on Wednesday in a move that has already upended markets and created great uncertainty.

While far from the hardest hit, Israel is expected to be faced with a 17 per cent tax on goods shipped to the US.

Mr Netanhyahu boasted on Sunday that he would be the first international leader to meet Mr Trump to discuss the issue, since he announced them earlier this week.

“I can tell you that I am the first international leader, the first foreign leader, who will meet with President Trump on the issue, which is so important to the Israeli economy,” Mr Netanyahu said. “There is a long line of leaders who want this regarding their economies. I think that it reflects the special personal link, as well as the special ties between the US and Israel, which is so vital at this time.”

Mr Trump has made tariffs the centre point of his economic agenda and appears willing to incur short term pain and the possibility of a recession for what he believes will eventually pay dividends and return US manufacturing and industrial supremacy, though many economists question the viability of his plan.

This will be Mr Netanyahu’s second trip to the US since the International Criminal Court issued a warrant for his arrest in November. The ICC warrant accused Mr Netanyahu and two other senior Israeli officials of bearing responsibility for "war crimes". Neither Israel nor the US are signed up to the ICC.

Mr Netanyahu arrives in Washington after a visit to Hungary, which withdrew from the court while he was in Budapest, allowing him to avoid arrest.

His visit comes at a time of great uncertainty in the Middle East. Israel has relaunched its military campaign in Gaza to devastating effect.

Mr Netanyahu’s government has prevented humanitarian aid from entering the besieged enclave since March 2, as it attempts to punish Hamas for not agreeing to new ceasefire terms put forward by US envoy Steve Witkoff last month.

Israel has retaken territory in Gaza. Earlier this week Mr Netanyahu announced plans to create yet another Israeli controlled corridor in Southern Gaza.

He is expected to discuss the war in Gaza as well the hostages still being held by Hamas with Mr Trump when the two meet.