President Donald Trump issued a stark warning to Canada overnight, signaling that a trade deal would be “very hard” to finalize if Ottawa proceeds with its plan to recognize a Palestinian state at the upcoming United Nations General Assembly.
“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 wrote on Truth Social around midnight.
The message comes just two days before Trump’s deadline for Canada to reach a trade agreement with the U.S. or face a 35% tariff, part of the Trump administration’s ongoing use of tariff leverage to influence global policy.
Canada Joins UK and France on Palestinian Statehood Push
Canadian Prime Minister Mark Carney announced Wednesday that Canada will move to recognize the State of Palestine during the 80th session of the UN General Assembly in September.
“Canada will always steadfastly support Israel… but any path to lasting peace for Israel also requires a viable and stable Palestinian state,” Carney said in a statement.
Carney also insisted that Hamas must disarm, release hostages from the October 7 terror attack, and have no role in future Palestinian governance.
Trump: Recognition “Rewards Hamas”
Earlier this week, Trump flatly rejected the idea of U.S. support for Palestinian statehood, saying:
“You could make the case that you’re rewarding Hamas if you do that… and I’m not about to do that.”
The Trump administration also boycotted a United Nations conference promoting a two-state solution, calling it a “publicity stunt” and an “insult” to Israel.
Trade Talks Now in Jeopardy
Trump’s threat could derail the high-stakes trade negotiations between the U.S. and Canada, which are facing a Friday deadline. If no agreement is reached, Canada could be slapped with a 35% tariff as part of Trump’s aggressive America First trade strategy.
Earlier this week, Trump also announced a 25% tariff on India, with an additional penalty for its energy and defense deals with Russia — reinforcing his strategy of economic retaliation against nations acting contrary to U.S. interests.
