Israel PM says he will break down trade barriers with US amid tariff drama
President Donald Trump’s bold trade moves shook the world Monday, and Israeli Prime Minister Benjamin Netanyahu seized the moment to strengthen ties with America.
On Monday, the two leaders met in the Oval Office to tackle trade barriers, while Trump’s tariffs sparked global market chaos and threats of even tougher measures against China. Conservatives cheer this as a long-overdue stand for fair trade.
Days before the meeting, Trump rolled out sweeping tariffs on goods from nations worldwide, including a hefty 25% duty on Mexico’s exports. Netanyahu pledged to slash Israel’s trade deficit with the U.S. and dismantle barriers, a promise that could make Israel a shining example of free yet fair trade. Trump, meanwhile, eyed a late-2025 exporter tax credit for U.S. manufacturers, per Bloomberg, signaling a pro-America economic push.
Trump’s tariffs hit China hardest, piling a 34% import tax atop existing rates, totaling 54%. China fired back with its own 34% tariff on American goods, set to start April 10. The president didn’t flinch, taking to Truth Social to warn Beijing of a crushing 50% additional tariff if they don’t back off by April 8.
Markets Reel From Tariff Shock
Global markets buckled under the tariff onslaught Monday morning. The Dow Jones cratered 1,700 points at the open, while the S&P 500 slid 3.44% and the Nasdaq fell 3.93%. Across the pond, Japan’s Nikkei plunged 7.8%, the UK’s FTSE 100 closed down 4.4%, and Germany’s DAX ended 4.1% lower.
A rumor of a 90-day tariff reprieve briefly lifted the Dow by 800 points. White House Press Secretary Karoline Leavitt squashed it on CNBC, calling it “fake news,” and markets slumped again, with the Dow finishing down 629 points. The S&P 500 settled at a 1.67% loss by 10 a.m. ET.
Trump stood firm Sunday aboard Air Force One, telling reporters, “Sometimes you have to take medicine to fix something.” Netanyahu echoed the sentiment Monday, saying, “We’re going to also eliminate trade barriers” that hinder fair deals. Both leaders framed their actions as tough but necessary for economic strength.
China Faces Trump’s Ultimatum
Trump doubled down on Truth Social, vowing to end all talks with China if their 34% tariff holds past April 8. “ADDITIONAL Tariffs on China of 50%, effective April 9th,” he warned, demanding they ditch their “long term trading abuses.” Beijing’s retaliation has only stiffened his resolve.
Netanyahu, meanwhile, pitched Israel as a free-trade model during the Oval Office sit-down. “Israel can serve as a model for many countries who ought to do the same,” he told reporters. His vow to ax barriers aligns with Trump’s vision of leveling the playing field.
The tariff clash sent shockwaves beyond stocks, with experts sounding recession alarms. Goldman Sachs pegged the U.S. recession risk at 45%, while JP Morgan warned of a 60% chance globally. Hedge fund titan Bill Ackman cautioned Trump’s tariffs could trigger an “economic nuclear winter.”
Consumers Brace For Price Hikes
Everyday Americans could feel the pinch soon, with iPhone prices potentially soaring to $3,500, experts predict. Trump’s tariffs aim to boost U.S. manufacturing, but critics warn of collateral damage to consumers. Supporters argue it’s a small price for bringing jobs home.
Monday’s market chaos hit Asia hard, with Hong Kong’s Hang Seng diving 13% and China’s CSI 300 dropping 7%. Europe fared no better, as France’s CAC 40 closed down 4.8% after a 6.3% intraday tumble. Trump’s medicine, it seems, comes with a bitter aftertaste.
Netanyahu’s trade pledge offers a glimmer of hope amid the storm. By cutting barriers, Israel could deepen its alliance with the U.S., a move conservatives see as a win for sovereignty. Trump’s team likely views it as proof his policies inspire global cooperation.
Trump Stands Defiant Amid Criticism
Despite the market rout, Trump remains unbowed, casting tariffs as a cure for trade imbalances. “I’m a free trade champion, and free trade has to be fair trade,” Netanyahu said, backing Trump’s stance. The duo’s synergy could reshape alliances in a tariff-torn world.
China’s deadline looms large, with April 8 deciding if Trump’s 50% tariff threat becomes reality. Beijing’s refusal to budge so far suggests a standoff that could drag markets deeper into the red. Conservatives applaud Trump’s backbone against a longtime trade foe.
For now, Americans watch as Trump and Netanyahu forge ahead, betting on strength over compromise. The tariff gamble may rattle wallets and markets, but its backers insist it’s the shot in the arm America needs. Time will tell if this medicine heals or harms.