Trump Threatens Trade Deal Over Canada's Backing of Palestine

22 hours ago 7

TEMPO.CO, Jakarta - United States President Donald Trump stated that a trade deal with Canada will be difficult to achieve after Canadian Prime Minister Mark Carney announced his country's plan to recognize Palestine.

"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!!" wrote Trump on the Truth Social platform, Wednesday night, July 30th, quoted from Daily Mail.

Currently, Trump and Carney are trying to finalize negotiations before Friday, August 1, 2025. This is the deadline set by Trump to impose a 35 percent tariff on all Canadian goods not covered in the U.S.-Mexico-Canada Agreement (USMCA) trade deal.

However, Trump called the announcement a hindrance to the deal.

Canada Follows the Steps of the UK and France

In an official statement on Wednesday, Carney stated that Canada plans to recognize Palestine at the United Nations session in September. According to an Arab News report, this move follows similar decisions by the UK and France.

Carney criticized Canada's long-standing approach of pushing for a two-state solution through negotiations between Israel and Palestine as "no longer tenable." He argued that the process has been greatly undermined by Hamas terrorism and the group's rejection of Israel's existence.

He also mentioned actions by the Israeli government, such as accelerating settlement construction and the Knesset's voting to annex the West Bank. "The level of human suffering in Gaza is intolerable," said Carney in a press conference in Ottawa.

Threats to Trade Negotiations

Carney reportedly made his decision after discussing the humanitarian crisis in Gaza with British Prime Minister Keir Starmer. A day before Carney's announcement, Starmer also expressed Britain's support for Palestine.

Carney stated that trade discussions with the Trump administration have been going well. However, he acknowledged that the negotiations may not be completed on time. "Tariff negotiations with Trump’s administration have been constructive, but the talks may not conclude by the deadline," said Carney.

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