Israeli Prime Minister Benjamin Netanyahu has promised to eliminate Israel's trade surplus with the United States, a move likely to be closely watched by world leaders as President Donald Trump's tariff policy roils global markets.
"We intend to do it very quickly," Netanyahu said as he sat beside Trump in the White House Oval Office. "We think it's the right thing to do, and we're going to also eliminate trade barriers."
The two leaders had planned a joint press conference in the East Room. But the public appearance was switched to the Oval Office, making it a less formal event with a smaller group of reporters invited in to ask questions.
"It's an honour to have a very, very special person here – I've dealt with him for a long time – Benjamin Netanyahu, the prime minister of Israel," Trump said.
"And we had lunch together, we've had meetings together, along with his very capable staff.”
President Donald Trump greets Israel Prime Minister Benjamin Netanyahu at the White House. – AP
Netanyahu was the first foreign leader to meet with Trump at the White House since the US president announced a sweeping tariff policy last week that has hammered global financial markets and raised concerns of a recession.
The United States, Israel's closest ally and largest single trading partner, last year had a $7.4 billion goods trade deficit with Israel.
Under Trump's new policy, Israeli goods face a 17 per cent US tariff.
When asked if his administration planned to reduce tariffs on Israeli goods, Trump made no promises.
"We've been ripped off and taken advantage of by many countries over the years, and can't do it anymore," he said.
Israel had already moved to cancel its remaining tariffs on US imports last Tuesday. The two countries signed a free trade agreement 40 years ago and about 98 per cent of goods from the United States are now tax-free.
The visit by Netanyahu on Monday was his second to the White House since Trump began his second term on January 20.
Donald Trump, Benjamin Netanyahu, Marco Rubio and JD Vance in the Oval Office. – AP
During their Oval Office talks, the two leaders also discussed the 18-month-old war in Gaza and the fate of hostages taken from Israel and still held in the Palestinian enclave.
Netanyahu said he was working on a new Gaza hostages-for-ceasefire deal with Hamas.
Trump said he would like the war in Gaza to stop and thinks that will happen relatively soon.
Asked if he would deliver on his election campaign promise to end the war in Gaza, Trump said:
"I'd like to see the war stop, and I think the war will stop at some point, that won't be in the too-distant future."
Israel launched the war after Hamas-led fighters attacked southern Israel on October 7, 2023, killing some 1200 people and taking 251 hostage, according to Israeli tallies. Since then, Israel has so far killed more than 50,000 Palestinians, according to local health authorities.
Trump said work was ongoing to free hostages held by Hamas, but said securing the release of all the hostages was "a long process".
Israeli Prime Minister Benjamin Netanyahu shakes hands with US Secretary of Commerce Howard Lutnick at Blair House, in Washington. – Israel Government press office via Reuters
Following the January ceasefire that saw some hostages released, Netanyahu said, Israel was working on "another deal we hope will succeed".
"We're committed to getting all the hostages out, but also eliminating the evil tyranny of Hamas in Gaza and enabling the people of Gaza to freely make a choice to go wherever they want," he said.
Netanyahu said he had also discussed with Trump the US president's "bold vision" for the future of Gaza, a reference to a proposal for the US to take over the enclave that Trump put forward multiple times during the opening weeks of his administration.
Trump's plan has been globally condemned.
Trump on Monday said having "a peace force like the United States there controlling and owning the Gaza Strip would be a good thing" and once again suggested that Palestinians from Gaza could be moved to different countries.
Israeli Prime Minister Benjamin Netanyahu and his wife, Sara Netanyahu, greet officials upon arrival in Washington. – Israel Government press office via Reuters
Trump also announced plans for direct US talks with Iran at an undisclosed location on Saturday. He said Iran would face "great danger" if it refuses to make a deal over its nuclear program.
The outcome of Trump's tariff talks with Netanyahu could signal to other foreign leaders whether Trump is willing to bend on the levies and how best to approach him.
Trump extended the surprise invitation in a phone call on Thursday with Netanyahu when the Israeli leader raised the tariff issue, according to Israeli officials.
An Israeli finance ministry official said on Thursday that Trump's tariff announcement could affect Israel's exports of machinery and medical equipment.
Trump's plan to take over Gaza – a timeline
President Donald Trump has proposed a US takeover of Gaza while also suggesting a permanent displacement of Palestinians from the enclave.
The plan has been condemned globally. Here is a timeline showing how Trump's comments have evolved since he first proposed displacing Palestinians on January 25:
JANUARY 25: First suggestion of a Palestinian displacement
- Five days after becoming president, Trump said Jordan and Egypt should take in Palestinians from Gaza while suggesting openness to this being a long-term plan.
"I'd like Egypt to take people, and I'd like Jordan to take people (from Gaza)," Trump said, adding he spoke that day with Jordan's King Abdullah.
"It's literally a demolition site. So, I'd rather get involved with some of the Arab nations and build housing at a different location where they (Palestinians) can maybe live in peace for a change," Trump said, adding: "We just clean out that whole thing."
Three reiterations in following week
- Trump reiterated this plan on January 27, 30 and 31, and added that he expected Egypt and Jordan to agree to it, even as they rejected the proposal.
"I think he (Egypt's president) would do it, and I think the king of Jordan would do it, too," Trump said on January 27.
FEBRUARY 4 (AFTERNOON): Suggestion of a permanent displacement
- Before his meeting with Israeli Prime Minister Benjamin Netanyahu in Washington on February 4, Trump suggested permanently displacing Palestinians from Gaza, saying people there had no alternative but to leave the enclave devastated by US ally Israel's military assault that has caused a dire humanitarian situation and killed tens of thousands.
"I think they (Gazans) should get a good, fresh, beautiful piece of land, and we get some people to put up the money to build it," Trump told reporters. "I don't know how they could want to stay (in Gaza)," he said.
Forced displacement is illegal under international law.
Damage in Gaza. – Reuters
FEBRUARY 4 (EVENING): US takeover proposal
- In a press conference with Netanyahu, Trump proposed a US takeover of Gaza, saying: "The US will take over the Gaza Strip. We'll own it and be responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site."
He said Washington will ask neighbouring countries with "humanitarian hearts" and "great wealth" to take in Palestinians. He said those countries will pay for rebuilding Gaza and housing displaced Palestinians.
When asked if US troops will be sent, Trump said: "If it's necessary, we'll do that." When asked who will live in Gaza, Trump said: "I envision world people living there. Palestinians also."
FEBRUARY 5: Trump aides walk back some of his statements
- While defending Trump's proposal, his top aides walked back some of his words about permanently displacing Palestinians and using the US military.
White House press secretary Karoline Leavitt said Palestinians should be "temporarily relocated" while Gaza is rebuilt and Secretary of State Marco Rubio said Palestinians will leave Gaza for an "interim" period. Leavitt said Trump had not committed to putting "boots on the ground."
FEBRUARY 6: Trump says no US soldiers needed in Gaza
- Trump posted on social media: "The Gaza Strip would be turned over to the United States by Israel at the conclusion of fighting. The Palestinians ... would have already been resettled in far safer and more beautiful communities, with new and modern homes, in the region." He added: "No soldiers by the US would be needed!"
FEBRUARY 10: Trump says Palestinians have no right of return
- In a Fox News interview, Trump was asked if Palestinians will have a right of return under his plan. He replied: "No, they wouldn't because they're going to have much better housing." He added: "I'm talking about building a permanent place for them."
FEBRUARY 11: Trump meets Jordan's king
- "We will have Gaza. No reason to buy. There is nothing to buy. It's Gaza. It's a war-torn area. We're going to take it. We're going to hold it. We're going to cherish it," Trump said on the day he met Jordan's king in Washington. The king reiterated his opposition.
On the same day, Trump was asked if he was going to withhold aid to Egypt and Jordan, which both rely on Washington for economic and military assistance.
He said: "You know, I think we'll do something. I don't have to threaten with money. I do believe we're above that."
APRIL 7: Trump's second US meeting with Netanyahu
- "I think it's an incredible piece of important real estate," Trump said about Gaza when he met Netanyahu again at the White House, more than two months after his initial Gaza takeover proposal.
"And I think it's something that we would be involved in, but you know having a peace force like the United States there, controlling and owning the Gaza Strip, would be a good thing."
He said: "And if you take the people, the Palestinians, and move them around to different countries, and you have plenty of countries that will do that." Trump added: "A lot of people like my concept. But you know, there are other concepts that I like too and there are some concepts I don't like."
Arab leaders in March adopted a $53 billion Egyptian reconstruction plan that would avoid displacing Palestinians from Gaza. Trump and Israel rejected it at the time.