Trump Threatens Canada Trade Deal Over Palestinian Statehood Move

United States President Donald Trump is taking aim at Canada’s plans to recognise Palestinian statehood, warning that it could derail ongoing trade talks between the two countries.

“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 posted Thursday on his Truth Social platform.

Canadian Prime Minister Mark Carney’s office has not yet commented on Trump’s remarks.

Carney said Wednesday that Canada would join the UK and France in recognising a Palestinian state during September’s UN General Assembly session — but only if certain conditions are met. Those include Palestinian Authority reforms, general elections in 2026 excluding Hamas, and demilitarisation of any future Palestinian state.

The move comes as international outrage mounts over Israel’s war on Gaza, which has killed more than 60,000 Palestinians since October 2023. Starvation deaths, including at least 89 children, and Israeli fire on US- and Israeli-backed aid distribution points have intensified calls for action.

Canada and the US are racing to wrap up trade negotiations before Trump’s self-imposed August 1 deadline, after which he says a 35% tariff will hit Canadian goods outside the US-Mexico-Canada trade pact.

Carney defended his stance, saying the two-state solution is “being eroded before our eyes” and that international action “cannot be delayed.”

Washington has opposed recognising Palestinian statehood, insisting it would “reward Hamas.” Israel echoed that line Thursday, claiming recognition “legitimises the barbarity of October 7.”

Palestinian Authority President Mahmoud Abbas welcomed Canada’s announcement as a “historic step,” while France confirmed it would coordinate efforts with Ottawa to push for renewed peace talks.

With input from Al Jazeera