Trump Warns Canada: Back Palestine, Lose Trade Deal
Trump Warns Canada: Back Palestine, Lose Trade Deal
U.S. President Donald Trump said on Thursday it would be “very hard” to reach a trade agreement with Canada after Prime Minister Mark Carney announced plans to recognize a Palestinian state.
Trump’s remarks come one day ahead of the Aug. 1 deadline for a new tariff agreement between the two nations. Canada is the second-largest U.S. trading partner, buying $349.4 billion of American goods last year and exporting $412.7 billion to the United States.
If no deal is reached, the U.S. is set to impose a 35 percent tariff on all Canadian goods not covered by the United States-Mexico-Canada Agreement (USMCA).
“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 stated in a Truth Social post.
Earlier this week, Canadian Prime Minister Mark Carney said trade negotiations with the United States were in an intense phase and suggested that a deal may be possible.
Carney has previously acknowledged that it was unlikely Canada would avoid tariffs altogether, indicating that while a tariff-free agreement was improbable, the size and scope of the tariffs were still under discussion.
“We haven’t really had a lot of luck with Canada. I think Canada could be one where they'll just pay tariffs, it’s not really a negotiation,” Trump told reporters at the White House on July 25.
The looming 35 percent tariff on Canadian goods entering the United States would be an increase from the current 25 percent level for non‑USMCA compliant imports, which was imposed on Canada over President Donald Trump’s border security concerns related to fentanyl and illegal immigration.
In response, Ottawa has introduced a number of measures, including allocating $1.3 billion for border security and appointing a “fentanyl czar.”
Washington has signaled that it expects more steps to be taken.
Trump said that if Canada responded with counter-tariffs, it could lead to further tariff increases by the United States. Canada has not announced any countermeasures. Carney said the government has consistently defended workers and businesses and will continue to do so ahead of the Aug. 1 deadline.
Japan and the European Union have signed trade deals with the United States that still include tariffs of up to 15 percent on key exports, such as steel and aluminum.
The UK-U.S. Economic Prosperity Deal, agreed in May, includes a 10 percent tariff on the first 100,000 British cars exported annually to the United States, rising to 25 percent beyond that. UK steel shipments will face no tariffs, avoiding the 25 percent sectoral levy.
Palestine Recognition Tensions
Trump’s remarks come after Carney said on Thursday that Canada plans to recognize Palestinian statehood at the 80th United Nations General Assembly in September, conditional upon reforms by the Palestinian Authority. These reforms include holding general elections next year, in which the terrorist group Hamas can play no part, and rejecting the militarization of a Palestinian state.
Carney said that he had spoken with Palestinian Authority President Mahmoud Abbas and discussed the humanitarian situation in Gaza and a two-state solution.
While Carney said that Canada continues to support Israel’s right to exist in peace and security, he said that a lasting peace requires a viable and reformed Palestinian state.
Israel rejected Carney’s statement on recognising a Palestinian state.
“The change in the position of the Canadian government at this time is a reward for Hamas and harms the efforts to achieve a ceasefire in Gaza and a framework for the release of the hostages,” the Israeli Foreign Ministry said on Thursday.
Canada’s announcement follows similar statements by France and the UK.
U.S. officials have criticized the move by the European nations to recognize a Palestinian state.
“The United States will not participate in this insult but will continue to lead real-world efforts to end the fighting and deliver a permanent peace,” the U.S. State Department spokesperson Tammy Bruce said on Monday.
Declassified Docs: Clinton Approved Plan to frame Trump on Russia
Jul 31, 2025
4 min
Graphic: Photo of Woman Beaten in Cincinnati Attack
Jul 31, 2025
2 min
Mysterious Orange Figure Caught on Epstein Jail Video
Jul 31, 2025
2 min
Trump Hits Brazil with 50% Tariffs and Sanctions
Jul 31, 2025
4 min
Trump Announces Trade Deal with South Korea
Jul 31, 2025
3 min
Trump Extends Mexico's Tariffs Deadline by 90 Days
Jul 31, 2025
2 min
Kash Patel: Trump 'Russiagate' Docs Found in Secret Room
Jul 31, 2025
6 min
Virginia Councilman Set on Fire in Office Attack
Jul 31, 2025
4 min
Senate Advances Bill Banning Politicians from Stock Trading
Jul 31, 2025
3 min
Supreme Court to Review Ghislaine Maxwell Appeal
Jul 31, 2025
2 min
Top FDA Official Resigns Under Pressure
Jul 31, 2025
2 min
Kamala Harris Won’t Run for California Governor
Jul 31, 2025
3 min
Texas GOP Releases New Congressional Map Proposal
Jul 31, 2025
2 min
NYT Admits Using Misleading Photo of ‘Starving’ Gaza Child
Jul 31, 2025
1 min
US Economy Grew at 3% Rate in Q2
Jul 31, 2025
2 min
Tsunami Warning Map Shows US Areas Under Threat
Jul 30, 2025
3 min
Trump Hits India with 25% Tariff and 'Penalty'
Jul 31, 2025
2 min
POLL: Mamdani Beats Out All NYC Mayoral Candidates
Jul 31, 2025
1 min
House Panel Rejects Immunity for Ghislaine Maxwell
Jul 30, 2025
2 min
Senate Confirms Susan Monarez as CDC Director
Jul 30, 2025
2 min