On the eve of a crucial trade deadline, U.S. President Donald Trump warned that Canada’s decision to formally recognize Palestinian statehood could jeopardize the high-stakes negotiations between the two countries.
“Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them,” Trump posted overnight Thursday on his Truth Social platform.
The U.S. and Canada have been engaged in tense trade talks since Trump took office earlier this year and triggered a global trade war by implementing sweeping tariffs. Both governments have since traded tariffs and restrictions, creating a volatile economic environment.
With the latest deadline looming, Trump has threatened to impose new 35% tariffs on Canadian goods unless a deal is reached by Friday. Though he has previously delayed such deadlines, U.S. Commerce Secretary Howard Lutnick confirmed this week that there would be no further extensions.
“Aug. 1, the tariffs are set. They’ll go into place. Customs will start collecting the money, and off we go,” Lutnick said.
Trump’s comments followed an announcement from Canadian Prime Minister Mark Carney, who declared that Canada would officially recognize an independent Palestinian state.
“Canada has long supported a two-state solution — an independent, viable, and sovereign Palestinian state living side by side with Israel in peace and security,” Carney said in a statement Wednesday. He argued that decades of failed negotiations and worsening conditions in the region made Canada’s formal recognition necessary.
Carney cited several reasons for the shift in policy: a growing humanitarian crisis in Gaza, persistent terrorist threats from Hamas, increasing settler violence in the West Bank, and political moves in Israel toward annexation. Since the October 7, 2023 attacks by Hamas that killed approximately 1,200 Israelis, the ongoing conflict has claimed more than 60,000 lives in Gaza, according to local health authorities.
“The deepening suffering of civilians leaves no room for delay in coordinated international action to support peace, security, and the dignity of all human life,” Carney said.
