Netanyahu Returns Empty-Handed as US Tariff Standoff Persists
At a high-stakes meeting in Washington, Israeli Prime Minister Benjamin Netanyahu failed to convince US President Donald Trump to reverse a new 17% tariff on Israeli exports, reports Giorgia Valente of The Media Line. The tax, part of Trump’s sweeping protectionist trade plan, has sent shockwaves through Israel’s export-heavy economy and sparked alarm across its political and business communities. While Netanyahu offered to eliminate all tariffs on American products and close Israel’s $7.4 billion trade surplus with the US, Trump held firm, signaling no relief for Israeli exporters.
The Israel Manufacturers Association estimates the tariff could cost the country $2.3 billion and up to 26,000 jobs, with sectors like biotech, electronics, and chemicals most at risk. Experts fear additional tariffs on pharmaceuticals and semiconductors could deepen the blow. Dr. Roby Nathanson, director of the Macro Center for Political Economics, described the move as “an attack on globalization,” warning that the US is shifting from efficiency to economic force.
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Trump’s push for “economic independence” marks a sharp break from decades of trade liberalization, placing allies like Israel in a difficult position. Professor Yossi Spiegel of Tel Aviv University noted that US pressure previously shaped Israel’s open-market reforms; now, that relationship could be upended. Analysts warn that high-tech firms may divert investment to avoid tariffs, impacting jobs, innovation, and GDP growth.
As Valente reports, the long-term effects of Trump’s trade policy are likely to ripple across global markets. For a deeper look into how this could reshape Israel’s economy and its trade ties with the US, read the full story at The Media Line.
