President Donald Trump warned that reaching a new trade deal with Canada will be “very hard” after the country moved to recognize Palestinian statehood — just one day before a key tariff deadline.
“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump posted on social media July 31. “That will make it very hard for us to make a Trade Deal with them.”
Trump’s warning coincides with a looming Aug. 1 deadline. If no new trade deal is reached by then, he plans to impose a 35% tariff on all Canadian goods not covered under the current US-Mexico-Canada trade agreement.
On July 30, Canadian Prime Minister Mark Carney said Canada would recognize the state of Palestine at a September United Nations meeting, provided it holds elections and meets other conditions. He blamed the deepening humanitarian crisis in Gaza for prompting the decision.
“Canada condemns the fact that the Israeli government has allowed a catastrophe to unfold in Gaza,” Carney said in a statement, “regrettably” calling a two-state solution “no longer tenable.”
He pointed to the threat of Hamas terrorism, Israel’s continued settlement expansion, settler violence in the West Bank, and what he called Israel’s failure to prevent Gaza’s humanitarian collapse.
France and Britain made similar announcements this week.
According to Reuters, Canada is the top export market for the US and its second-largest trading partner, after Mexico. In 2024, Canada exported $412.7 billion in goods to the US and imported $349.4 billion, the outlet reported. Canada remains subject to US tariffs on steel, aluminum, and vehicle exports.
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Author: Elise Winland
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