President Donald Trump issued a sharp warning late Wednesday, signaling that Canada’s backing of Palestinian statehood could derail ongoing trade negotiations between the two countries. The announcement came as Canada declared it would join France and the United Kingdom in seeking United Nations recognition of a Palestinian state.
In a post to Truth Social shortly after midnight, Trump wrote, “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!!!”
The warning lands just two days before a looming trade deadline, after which Canada could face a 35 percent tariff on key exports if a deal is not reached. The proposed penalty is part of the Trump administration’s strategy to tie trade policy directly to geopolitical alignment with U.S. interests.
Canadian Prime Minister Mark Carney confirmed his government’s position in a formal statement, saying Canada intends to recognize Palestine during the United Nations General Assembly in September. He reiterated Canada’s commitment to Israel’s security and stated that Hamas must release hostages, disarm, and take no part in future Palestinian governance.
“Canada will always steadfastly support Israel’s existence as an independent state,” Carney said. “Any path to lasting peace for Israel also requires a viable and stable Palestinian state, and one that recognizes Israel’s inalienable right to security and peace.”
Trump, however, voiced strong objections to the notion of recognizing Palestine at this time, citing concerns that it would amount to a concession to Hamas, the group behind the October 7 terrorist attacks on Israel. “You could make the case that you’re rewarding Hamas if you do that,” Trump said earlier this week. “And I’m not about to do that.”
The administration has also boycotted recent U.N. events promoting a two-state solution, calling them “publicity stunts” that undermine serious diplomatic work. Trump continues to position U.S. foreign policy around strong support for Israel and economic pressure on governments that undermine those priorities.
This approach has extended beyond Canada. On Wednesday, Trump announced a 25 percent tariff on India and warned of further penalties for its continued military and energy ties to Russia during the ongoing war in Ukraine. The administration has voiced similar concerns about China’s involvement with sanctioned Russian oil.
