Israel and US Are at Odds over Conflicting Visions for Postwar Gaza

An Israeli army self-propelled artillery howitzer fires rounds from a position near the border with the Gaza Strip in southern Israel on December 7, 2023 amid battles between Israel and the Palestinian group Hamas in the Gaza Strip. (AFP)
An Israeli army self-propelled artillery howitzer fires rounds from a position near the border with the Gaza Strip in southern Israel on December 7, 2023 amid battles between Israel and the Palestinian group Hamas in the Gaza Strip. (AFP)
TT
20

Israel and US Are at Odds over Conflicting Visions for Postwar Gaza

An Israeli army self-propelled artillery howitzer fires rounds from a position near the border with the Gaza Strip in southern Israel on December 7, 2023 amid battles between Israel and the Palestinian group Hamas in the Gaza Strip. (AFP)
An Israeli army self-propelled artillery howitzer fires rounds from a position near the border with the Gaza Strip in southern Israel on December 7, 2023 amid battles between Israel and the Palestinian group Hamas in the Gaza Strip. (AFP)

The United States has offered strong support to Israel in its war against the Hamas militant group that rules the Gaza Strip. But the allies are increasingly at odds over what will happen to Gaza once the war winds down.

Israel’s prime minister, Benjamin Netanyahu, this week announced that Israel would retain an open-ended security presence in Gaza. Israeli officials talk of imposing a buffer zone to keep Palestinians away from the Israeli border. They rule out any role for the Palestinian Authority, which was ousted from Gaza by Hamas in 2007 but governs semi-autonomous areas of the occupied West Bank.

The United States has laid out a much different vision. Top officials have said they will not allow Israel to reoccupy Gaza or further shrink its already small territory. They have repeatedly called for a return of the internationally recognized Palestinian Authority and the resumption of peace talks aimed at establishing a Palestinian state alongside Israel.

These conflicting visions have set the stage for difficult discussions between Israel and the US.

Here’s a closer look at the issues.

SHAKY COMMON GROUND Israel declared war on Hamas after the militant group burst across its southern border on Oct. 7, slaughtering some 1,200 people, mostly civilians, and kidnapping more than 240 others. President Joe Biden quickly flew to Israel on a solidarity mission, and his administration has strongly backed Israel’s right to defend itself while providing weapons and military assistance.

Israel has said its goal is to destroy Hamas —- a difficult task given the group’s deep roots in Palestinian society.

The US, which along with other Western countries considers Hamas a terrorist group, has embraced this goal. But as the war drags on, it has expressed misgivings about the dire humanitarian conditions and mounting civilian death toll in Gaza, where health authorities report over 16,000 dead, at least two-thirds of them women and children. Israel says Hamas is to blame by using civilians as human shields.

Over the weekend, Defense Secretary Lloyd Austin said it is critical that Israel protect Gaza’s civilians.

“If you drive them into the arms of the enemy, you replace a tactical victory with a strategic defeat,” he said. “So I have repeatedly made clear to Israel’s leaders that protecting civilians in Gaza is both a moral responsibility and a strategic imperative.”

On Thursday, Secretary of State Antony Blinken went even farther, telling Israel that “civilian casualties remain too high and that Israel must step up its efforts to reduce them,” his office said. Blinken also called on Israel to increase the flow of humanitarian aid into Gaza.

DIFFERENT VISIONS The biggest differences between the allies have emerged over the longer-term vision for Gaza.

Netanyahu has offered only glimpses of what he plans.

On Tuesday, he said the military would retain open-ended security control over the Gaza Strip long after the war ends, suggesting a form of extended Israeli occupation.

Netanyahu ruled out the idea of foreign peacekeepers, saying only the Israeli army could ensure that Gaza remains demilitarized. Netanyahu has also rejected a return of the Palestinian Authority, saying its leader, Palestinian President Mahmoud Abbas cannot be trusted.

“After destroying Hamas, Gaza will be demilitarized and de-radicalized so that no threat will be posed to Israel from Gaza,” said Ophir Falk, an adviser to Netanyahu. “The buffer zone may be part of the demilitarization. That’s the plan.”

Biden and other top officials have repeatedly said that a “revitalized” Palestinian Authority must play a role in postwar Gaza and that Israel must seek a two-state solution involving the PA. They have ruled out a long-term re-occupation or redrawing of Gaza’s borders.

Vice President Kamala Harris laid out perhaps the clearest US vision during an address in Dubai last weekend.

“Five principles guide our approach for post-conflict Gaza: no forcible displacement, no re-occupation, no siege or blockade, no reduction in territory, and no use of Gaza as a platform for terrorism,” she said. “We want to see a unified Gaza and West Bank under the Palestinian Authority, and Palestinian voices and aspirations must be at the center of this work.”

Frustration with Netanyahu may not be limited to the US.

Amos Harel, the military affairs columnist for the Haaretz daily, said Israeli army commanders believe Netanyahu is motivated by domestic political considerations and refusing to deal with the Palestinian Authority “due to coalition constructions from his far-right partners.” Netanyahu and his hardline coalition partners oppose Palestinian independence.

HOW SERIOUS ARE THE DISPUTES? For now, both sides seem to be focused on the shared goal of destroying Hamas.

“It's important for them that Israel achieve the military goals because this is the starting point for any changes that can happen the day after,” said Eldad Shavit, a former high-ranking Israeli intelligence official.

He said US pressure in the short term will be on immediate issues — such as pressure to minimize civilian casualties and to allow more deliveries of humanitarian aid.

The US has indicated that it will show some patience after the fighting subsides.

State Department spokesman Matthew Miller said the US understands “there will have to be some kind of transition period after the end of major combat operations.” He declined to say how long that would take.

But as the death toll in Gaza continues to rise, conditions deteriorate, and Biden enters an election year with significant portions of his Democratic base pushing for an end to Israel’s offensive, these differences are likely to grow in the absence of a clear endgame.

Shavit said that tensions could rise if the US at some point concludes that Israel is dragging its feet or ignoring American demands. But for now, “the Americans want Israel to succeed,” he said.

Daniel Levy, a former Israeli peace negotiator who is president of the US/Middle East Project, a policy institute that studies the Israeli-Palestinian conflict, said the Americans are unlikely to put their foot down.

He cited what he described as a tepid American response to heavy civilian casualties in southern Gaza as an indicator of what lies ahead.

“Israelis have a sense that their road to run is not endless, but they still feel they have lots of road to run,” he said.



Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT
TT
20

Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT

A week of turbulence unleashed by US President Donald Trump's tariffs showed little sign of easing on Friday, with financial markets again whipsawing and foreign leaders grappling with how to respond to a dismantling of the world trade order.

A brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to his escalating trade war with China that has fueled global recession fears.

US Treasury Secretary Scott Bessent tried to assuage sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations. Trump himself expressed hope of a deal with China, the world's No.2 economy.

But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic.

The S&P 500 index ended 3.5% lower on Thursday and is now down about 15% from its all-time peak in February.

Asian indices mostly followed Wall Street lower on Friday with Japan's Nikkei down 4%, though markets in Taiwan and Hong Kong turned positive and European stocks were set to open slightly firmer.

A sell-off in government bonds - which caught Trump's attention before Wednesday's pause - picked up pace on Friday with US long-term borrowing costs set for their biggest weekly increase since 1982. Gold, a safe haven for investors in times of crisis, scaled a record high.

"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at investment fund Janus Henderson.

Bessent on Thursday shrugged off the renewed market turmoil and said striking deals with other countries would bring certainty.

The US and Vietnam have agreed to begin formal trade talks, the White House said. The Southeast Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the United States via its territory in the hope of avoiding tariffs, Reuters exclusively reported on Friday.

Japanese Prime Minister Shigeru Ishiba, meanwhile, has set up a trade task force that hopes to visit Washington next week. Taiwan said it also expects to be included in the first batch of trading partners to hold talks with Washington.

CHINA DEAL?

As Trump suddenly paused his 'reciprocal' tariffs on other countries hours after they came into effect earlier this week, he ratcheted up duties on Chinese imports as punishment for Beijing's initial move to retaliate.

Trump has now imposed new tariffs on Chinese goods of 145% since taking office, a White House official said.

Chinese officials have been canvassing other trading partners about how to deal with the US tariffs, most recently talking to counterparts in Spain, Saudi Arabia and South Africa.

Trump told reporters at the White House he thought the United States could make a deal with China, but he reiterated his argument that Beijing had "really taken advantage" of the US for a long time.

"I'm sure that we'll be able to get along very well," Trump said, adding that he respected Chinese President Xi Jinping. "In a true sense he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for both countries."

China, which has rejected what it called threats and blackmail from Washington, restricted imports of Hollywood films, targeting one of the most high-profile American exports.

The US tariff pause also does not apply to duties paid by Canada and Mexico, whose goods are still subject to 25% fentanyl-related tariffs unless they comply with the US-Mexico-Canada trade agreement's rules of origin.

With trade hostilities persisting among the top three US trade partners, Goldman Sachs estimates the probability of a recession at 45%.

Even with the rollback, the overall average import duty rate imposed by the US is the highest in more than a century, according to Yale University researchers.

The pause also did little to soothe business leaders' worries about the fallout from Trump's trade war and its chaotic implementation: soaring costs, falling orders and snarled supply chains.

One reprieve came, however, when the European Union said on Thursday it would pause its first counter-tariffs.

The EU had been due to launch counter-tariffs on about 21 billion euros ($23 billion) of US imports next Tuesday in response to Trump's 25% tariffs on steel and aluminium. It is still assessing how to respond to US car tariffs and the broader 10% levies that remain in place.

Finance ministers from the 27-country bloc will brainstorm on Friday how to use the pause to get a trade deal with Washington and how to coordinate their efforts to handle tariffs if they do not.

European authorities estimate the impact of the US tariffs its economy would total 0.5% to 1.0% of GDP. Given the EU economy as a whole is forecast to grow 0.9% this year, according to the European Central Bank, the US tariffs could tip the EU into recession.