Trump Warns Canada’s Palestinian State Support May Derail Trade Deal

President Donald Trump warned that Canada’s recent support for recognizing a Palestinian state could severely impact U.S.-Canada trade relations. The comment, posted Thursday on Trump’s social media platform, comes just days before a critical trade deadline.

—That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!— Trump wrote on Truth Social, reacting to the announcement by Canadian Prime Minister Mark Carney.

The statement adds fuel to growing tensions between the two nations. Trump has already threatened to impose a 35% tariff on Canadian imports if a new deal isn’t finalized by Friday. His administration has been using trade threats as leverage on issues far beyond economics, such as human trafficking and now foreign policy.

Trade Meets Foreign Policy

Trump’s remarks come amid a growing global shift toward recognizing Palestinian statehood. British Prime Minister Keir Starmer and French President Emmanuel Macron recently expressed similar positions. Yet Trump had appeared ambivalent about their moves, calling Macron’s decision “not going to change anything.”

But with Canada, his tone shifted. Trump previously joked that Canada should become the U.S.’s 51st state. Now, he’s treating Carney’s decision as a strategic inflection point in trade negotiations.

A spokesperson for Prime Minister Carney declined to comment.

Trade Deal at Risk

While some Canadian goods remain under protection from the 2020 U.S.-Mexico-Canada Agreement, the pact is set for renegotiation next year. Trump’s threat introduces fresh uncertainty into an already tense economic environment.

The situation echoes Trump’s recent actions toward Brazil. There, he proposed steep tariffs after Brazil indicted Trump ally Jair Bolsonaro. Critics argue the former president’s trade policy is increasingly driven by personal and political motivations.

The Bigger Picture

Trump’s stance on Palestinian statehood remains unclear. Though he said he wouldn’t take a position, he also stated that recognition of Palestine would be “rewarding Hamas.” That group led the October 7, 2023 attack on Israel, sparking war and drawing international condemnation.

Canada’s recognition move adds pressure to Israel, especially as more allies demand a Gaza ceasefire and increased humanitarian aid. Carney’s decision places Canada among a growing list of Western nations pushing for a two-state solution.

Outlook

As trade talks approach a pivotal deadline, Trump’s tariff threats continue to unsettle global partners. Whether this latest diplomatic clash stalls progress remains to be seen. But for now, Canada’s decision has added a new dimension to already complex trade negotiations.

Source: AP News