Donald Trump issues trade threat to Canada

In a blunt post on his platform Truth Social late Thursday, former U.S. President Donald Trump asserted that Canada’s plan to formally recognize a Palestinian state will make it “very hard” to finalize a trade deal between the two nations.

Trump’s comment comes just ahead of an Aug. 1 deadline by which the U.S. has warned that a 35 per cent tariff could be imposed on Canadian goods not covered under the US‑Mexico‑Canada Agreement (CUSMA).

“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. Oh’ Canada!!!” Trump’s post read.

Trump’s contention with Canada follows the decision, announced Wednesday by Prime Minister Mark Carney, to recognize the State of Palestine at the 80th United Nations General Assembly in September 2025.

The move mirrors similar pledges by the U.K. and France, and is anchored in Canada’s commitment to a two‑state solution and concern over what Ottawa describes as a deteriorating humanitarian situation in Gaza.

Trump’s administration has consistently been described as providing uncompromising support for Israel and Prime Minister Benjamin Netanyahu.

Carney stressed that Canadian recognition is conditional on governance reforms by the Palestinian Authority, including free general elections in 2026 that exclude Hamas, and demilitarisation of the prospective Palestinian state.

Canada and the U.S. have been engaged in intensive negotiations to resolve trade disputes, including existing U.S. tariffs on Canadian steel, aluminum and automobiles.