The outcome of yesterday's meeting between Trump and Netanyahu is probably the worst economic news so far.
1. Prior to the effective date of The Tariffs*, Israel offered the US across-the-board zero tariff rates. (Now, Israel's average effective tariff rate on US exports is in the 1-2% range, but that's neither here nor there.) Trump refused and imposed tariffs on Israel on schedule.
2. Immediately after the imposition of The Tariffs, Netanyahu requested an immediate personal meeting with Donald Trump. His request was granted. Now, this is the stuff Trump loves. A world leader "begging" for a meeting! A chance to have a "negotiation!" Face-to-face! Two men in a room! The White House scheduled a press conference following the meeting, presumably expecting to have something Very Beautiful to announce.
3. The meeting happened.
4. The White House cancelled the press conference, opting instead for a brief joint appearance from the Oval.
5. The only "agreement" announced was Netanyahu "agreeing" to do something about Israel's trade surplus with the United States. The tariffs remain in place. (Also, Iran bad.)
My -- speculative -- interpretation of this sequence of events is that (a) Netanyahu did everything right -- i.e., did everything he possibly could to flatter and mollify Trump, and (b) it wasn't enough, because Trump is serious about this trade deficit crap.
The fact that Benjamin Netanyahu couldn't find a way to get Trump to budge on this seems, to me, to be incontrovertible evidence that Trump is all-in on his insane trade war. It's not a con; it's a genuine obsession. Which is disastrous news.
* I suspect that we're going to wind up capitalizing The Tariffs, a bit like The Troubles.
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