Bank Hapoalim's chief economic advisor, Leo Leiderman, warns that US tariffs could lead to a trade war, causing a slowdown in growth, damage to international trade, and a rise in inflation and interest rates. He also suggests that President Trump may back down from the tariffs. The main aims of the tariffs are to reduce the US current account deficit, increase tax revenue, protect domestic industries, and punish Canada and Mexico. Leiderman believes that trade wars have negative effects on economic activity, employment, and living standards. The effects on Israel will be indirect, with potential impacts on inflation, interest rates, and global trade.