Trump Threatens Trade Tariffs as Canada Moves to Recognise Palestine

A new diplomatic clash is brewing between Washington and Ottawa after Canadian Prime Minister Mark Carney announced Canada’s formal support for Palestinian statehood. The declaration, made on Wednesday, was quickly followed by a stern warning from former U.S. President Donald Trump, who took to Truth Social to voice his displeasure.

“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 early Thursday.

His statement came just one day before his self-imposed deadline of 1 August for finalizing bilateral trade agreements. From Friday onward, Trump has vowed to impose a 35% tariff on Canadian imports not covered by the existing US-Mexico-Canada Agreement (USMCA), escalating the pressure.

This latest tariff threat adds to a series of protectionist moves Trump has made against Canada since the start of his second term in January, signaling increasingly strained cross-border relations.

Carney Joins EU Allies in Supporting Palestinian Recognition

Prime Minister Carney’s decision follows similar announcements by France and the United Kingdom, as momentum grows internationally in support of a two-state solution. His remarks came amid rising global alarm over the humanitarian disaster unfolding in Gaza, where the ongoing Israeli military campaign has led to severe food shortages and reports of famine.

“The suffering in Gaza has become intolerable,” Carney stated during Wednesday’s address. “Canada has long supported a peaceful two-state solution—an independent and sovereign Palestine living side by side with Israel in peace and security.”

Carney also outlined key conditions for recognition, including the demilitarisation of a future Palestinian state and the exclusion of Hamas from the 2026 general elections. The official recognition would be made during a scheduled global summit in September, provided these stipulations are met.

Israel Condemns Canada’s Position

The Israeli government has issued a sharp rebuke of Canada’s move, calling it a “reward for Hamas.” In a post on X (formerly Twitter), Israel’s Foreign Ministry stated that Ottawa’s decision would undermine current efforts to negotiate a ceasefire in Gaza. Foreign Minister Gideon Sa’ar further criticised the plan, warning that a Palestinian state under current conditions would amount to a “Hamas state.”

Carney’s statement has amplified a broader geopolitical trend, as other major Western powers prepare to follow suit. French President Emmanuel Macron confirmed last week that France will recognise Palestine at the United Nations in September. Meanwhile, UK Prime Minister Keir Starmer announced on Tuesday that Britain will do the same—if Israel does not agree to a ceasefire and commit to a lasting peace process by then.