By Steve Holland
WASHINGTON (Reuters) – Israeli Prime Minister Benjamin Netanyahu will seek to limit the sting of tariffs imposed on his country when he meets U.S. President Donald Trump on Monday, a visit likely to be closely watched by world leaders as global markets spiral downward.
Netanyahu will be the first foreign leader to meet face-to-face with Trump since he announced a sweeping tariff policy last Wednesday.
Under the new policy, Israeli goods face a 17% U.S. tariff. The United States is Israel’s closest ally and largest single trading partner.
During midday talks in the Oval Office, the two leaders are also expected to discuss the 18-month-old war in Gaza and the fate of hostages taken from Israel and still held in the Palestinian enclave.
They are to hold a joint press conference at 2:30 p.m. EDT (1830 GMT). It will be Trump’s first press conference since the tariff announcement.
The outcome of the talks could signal to other foreign leaders whether Trump is willing to bend on the levies and how best to approach him.
“We’re going to talk about trade,” Trump told reporters on Air Force One on Sunday night as he flew to Washington from Florida.
Trump’s sweeping tariff plans hammered global financial markets and U.S. stocks braced for more turmoil on Monday, after he warned foreign governments they would have to pay “a lot of money” to lift the levies he called “medicine.”
Trump economic adviser Kevin Hassett told Fox & Friends that Trump spent much of the weekend talking to foreign leaders on the phone about the tariffs. He did not provide names.
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 latest tariff announcement could affect Israel’s exports of machinery and medical equipment.
Israel had already moved to cancel its remaining tariffs on U.S. imports last Tuesday. The two countries signed a free trade agreement 40 years ago and about 98% of goods from the United States are now tax-free.
The Palestinian militant group Hamas said it fired a barrage of rockets at cities in Israel’s south on Sunday in response to Israeli “massacres” of civilians in Gaza.
Israel’s military said about 10 projectiles were fired, but most were successfully intercepted. Israel’s Channel 12 reported a direct hit in the southern city of Ashkelon.
The first phase of a ceasefire between Israel and Hamas went into force on January 19 after 15 months of war and involved a halt to fighting, the release of some of the Israeli hostages held by Hamas and the freeing of some Palestinian prisoners.
However, Israel said on March 19 that its forces resumed ground operations in the central and southern Gaza Strip. Both parties blamed each other for a stalemate in the ceasefire talks.
The war began when Hamas fighters stormed into Israeli communities on October 7, 2023, killing 1,200 people and capturing more than 250 hostages, by Israeli tallies. Since then, Israel has reduced much of Gaza to ruins and killed more than 50,000 Palestinians, say the enclave’s health authorities.
The two leaders are also expected to discuss Iran amid mounting tensions that prompted the United States to reinforce its military capability in the Middle East with more warplanes
(Reporting By Steve Holland; Additional reporting by Steven Scheer and Emily Rose; Editing by Colleen Jenkins and Howard Goller)
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