Made in The USA - Sold in Israel? "Jerusalem Weighs U.S. Car Imports, Defense Buys to Appease Trump on Trade Deficit"

Hopes were high in Jerusalem that Prime Minister Benjamin Netanyahu’s meeting with U.S. President Donald Trump would yield a public announcement about lifting the newly imposed 17% tariffs on Israeli exports. But following a joint press conference on Monday, it became clear that no such commitment had been made.

While the leaders exchanged warm words, the core issue of punitive trade measures remained unresolved. Instead, behind closed doors, Israeli officials have begun considering concessions to reduce the trade deficit with the U.S., currently estimated at $7 billion.

Import Shift & Defense Deals

Among the proposals under discussion: prioritizing the import of U.S.-made electric vehicles over Chinese alternatives that dominate the Israeli market, and increased procurement of American-made military equipment.

Such moves could signal goodwill toward the Trump administration, in hopes of easing economic tensions and potentially prompting tariff relief down the line.

Netanyahu himself hinted at such a direction, stating during the press conference,

Analysts believe Israel may frontload defense-related purchases—such as weaponry, gear, or even military boots—as it has done in the past. A similar move years ago saw the Israel Defense Forces (IDF) buy boots from American factories instead of local ones, which led to the closure of Israeli production lines and layoffs.

Trump: “We Help Friends, Not Enemies”

President Trump remained non-committal on the tariff issue, saying,

Trump used the moment to strike a broader tone on global trade, criticizing the European Union for unfair treatment and reiterating threats of additional tariffs against China if it doesn’t drop its own import duties by noon the next day.

Industry Pushback in Israel

Back in Israel, Dr. Ron Tomer, President of the Manufacturers Association of Israel, warned that the U.S. tariffs could be devastating to the Israeli economy.

He urged the Netanyahu government to present a clear economic roadmap to close the trade gap in a way that benefits both nations.