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Trump gives trade threat to Canada after Palestine move

  • He linked recognition to trouble in future trade deals
  • Canada may face 35% tariffs without a new agreement
Update : 31 Jul 2025, 04:34 PM

US President Donald Trump has threatened Canada with repercussions for negotiations on a trade deal after it announced its plans to recognize Palestinian statehood, on Thursday. 

“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 said on Truth Social, his social media platform. 

Trump's statement is set to intensify a trade war between US and Canada, just a day ahead of the August 1 deadline to lock a tariff agreement. 

If the two countries fail to strike an agreement by the deadline, Canada faces a 35% tariff on its goods which are not covered under the US-Mexico-Canada trade pact,

On Wednesday, Canada's Prime Minister Mark Carney announced the possibility of recognizing a Palestinian state at the upcoming United Nations General Assembly, scheduled for September. 

The UK and France have also said over the last week that they would support statehood for Palestine. 

 

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