U.S. President Donald Trump likes to call his proposed tax cut "a Christmas present" to the American people. This week, by recognizing Jerusalem as Israel's capital, he has presented the Jewish state with what appears to be a Hanukkah gift.

Appearances can be deceiving. There is more than generosity, or fidelity to a campaign promise, behind this move. Trump's many critics don't give him much credit for strategic thinking, but I think that's what we are seeing right now.

In and of itself, Trump's declaration gives nothing away. Jerusalem has been the de facto capital of Israel for 70 years. East Jerusalem, which the Palestinians claim, was annexed by Israel in summer 1967. The world didn't recognize that annexation, but Israelis now take it for granted. Jerusalem is the seat of the Knesset, the Supreme Court and the prime minister's residence. East Jerusalem is home to more than 200,000 Israelis. No Israeli government could bargain it away and stay in power. It is a fait accompli.