Trump threatens Canada with trade sanctions over Palestine recognition

U.S. President Donald Trump stated that Canada’s decision to recognize Palestine as a state will make trade negotiations between the two countries “very difficult.”

“Canada just announced that it backs Palestinian statehood. That will make it very hard for us to make a Trade Deal with them. Oh, Canada!” Trump wrote late Thursday on his Truth Social platform.

This statement comes just days before the August 1 deadline, after which the United States has warned it could impose a 35% tariff on Canadian goods not covered under the United States–Mexico–Canada Agreement (USMCA).

Canadian Prime Minister Mark Carney announced that Canada would formally recognize the State of Palestine at the United Nations General Assembly in September—on the condition that the Palestinian Authority holds general elections in 2026 without Hamas’ participation and agrees to demilitarize the future Palestinian state.

The move mirrors similar pledges from the United Kingdom and France and is rooted in Canada’s commitment to a two-state solution and growing concern over the worsening humanitarian crisis in Gaza.

In a press release, the American Jewish Committee called the decision “deeply troubling,” saying: “The timing of this announcement—just after Hamas once again rejected a ceasefire and hostage release deal—emboldens those who believe violence and terrorism are legitimate political tools.”

Trump’s administration has consistently shown unwavering support for Israel and Prime Minister Benjamin Netanyahu.

Meanwhile, Canada and the U.S. are engaged in intense negotiations to resolve ongoing trade disputes, including U.S. tariffs on Canadian steel, aluminum, and automobiles.

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