Under the Biden administration, Israel's far-right finance minister was a rare Israeli official whose name was bucked by the United States because of his views, like opposed to a ceasefire in Gaza.
Under the Trump administration, he was a welcome guest in Washington, where top US officials are now in line with some of his beliefs about the Israeli-Palestinian conflict.
Minister Bezarel Smotlich met with Treasury Secretary Scott Bescent on Wednesday.
“During that time, four years after no ministerial level meetings between the US Treasury and the Israeli government under the Biden administration, we are now entering the Treasury Department,” Smotrich said. He called Wednesday's meeting “very important.”
After that, Smotrich posted a photo of himself shaking hands with Bescent on social media. The two officials issued a joint statement saying they agreed to “enhancing collaboration” on issues such as economic policy, technology and financial regulations.
“This is a critical time for both countries to shape a new strategic economic future, strengthening America's global leadership and its role as a key economic partner for Israel,” the statement said.
The Treasury did not immediately answer questions for further details.
The conference highlighted the Trump administration's welcome to the people and stances supported by Israel's far right, which the US has long shunned, and many countries and rights activists. Those positions include the mass removal of Palestinians from Gaza, which Trump proposed last month, and experts say it violates international law.
In contrast to the protests on Trump's plan, Smotrich gave him full support, saying he would work to implement it.
The Israeli Finance Minister has long supported Israel's occupation of the West Bank, as well as the indefinite territory of Israel. He also holds a strong role in overseeing funding for the Palestinian authorities that govern parts of the West Bank, and the role of the Ministry of Defence that allowed him to advance Jewish settlements.
As a religious hardliner and settler leader, Smotrich believes that the West Bank, which Israel seized in the war with Jordan in 1967, was promised to the Jews by the Bible God. His efforts to cripple Palestinian authority and support Jewish settlers are craving Biden officials, but Trump is now raising several numbers that share Smotrich's views.
Trump has chosen former Arkansas Governor Mike Huckabee, a Christian Zionist and former Baptist pastor, for Israeli ambassador and Israeli representative Elise Stefanik.
Much of the world considers Jewish settlements on the West Bank to be illegal, some are illegal under Israeli law. The territory is home to approximately 3 million Palestinians and approximately 500,000 Jewish settlers. Palestinians on the West Bank live under military control and cannot vote in Israel, but Israelis in this region live under civil law.
Israel has explicitly and expressly allowed for the expansion of settlements, and at a particularly rapid pace in recent years. The government has argued that the territory remains contested, and that its fate should be determined by negotiation.
Using his position as finance minister, Smotrich relies on the transfer of taxes collected by Israel, blocking and threatening the flow of funds to Palestinian authorities that must trade with Israeli banks.
His actions led to clashes with his counterparts overseas, including former Treasury Secretary Janet Yellen, who last year warned Israel to cut ties with Israeli banks.
Smotrich said it corresponds to three European countries that have declared their perception of the Palestinian state, and that ultimately the Israeli government released the funds in exchange for legalizing additional settlements. In October, he extended the exemption under pressure from Yellen, who did not visit Israel as Treasury Secretary.
Smotrich also elicited condemnation from the Biden administration for a statement opposing the ceasefire and hostage trade between Israel and Hamas. A group of Democrats in Congress had called for Smotrich to impose sanctions under an executive order that Trump subsequently retreated.
Smotrich's visit to Washington has raised alarms among several American Jewish organizations. The organisation says the conference could threaten the ceasefire meeting between Israel and Hamas, and could justify a position previously deemed taboo.
Before the conference took place, Khadar Suskind, president of the progressive organisation of New Jewish Stories, wrote in the Forward magazine that it has already been spun in the Israeli press as a comeback for divisive leaders who promote racism, extremism and violence.
Asked about Smotrich's visit, Marshall Whitman, a spokesman for the American and Israeli Public Relations Committee and an influential Israeli lobbying group, said “a discussion between American and Israeli officials on issues of common concerns” would benefit both countries.
