Donald Trump, United States president, has warned that it will be “very hard” to finalise a trade agreement with Canada after Ottawa announced its intention to recognise Palestinian statehood — joining a growing number of Western allies distancing themselves from Israel’s war in Gaza.
In a post on his Truth Social platform on Thursday, Trump expressed clear frustration at the Canadian move, writing: “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!!!”
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The comments come just days before a looming August 1 deadline by which Trump has threatened to impose a sweeping 35 percent tariff on all Canadian goods not protected under the US-Mexico-Canada Agreement (USMCA). Both sides have been locked in negotiations to prevent the trade blow, with Canadian officials describing talks as “constructive”, but warning that a final deal may not be reached in time.
Ottawa’s shift on Palestinian recognition was announced Wednesday by Canadian prime minister Mark Carney, who said the government would formally support Palestinian statehood during the upcoming 80th session of the United Nations General Assembly in September — if certain conditions are met.
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Carney said the recognition was intended to preserve the diminishing hope of a two-state solution to the Israeli-Palestinian conflict, calling it a “longstanding Canadian objective that is being eroded before our eyes”.
Conditional recognition
Canada’s recognition of Palestine will depend on major reforms by the Palestinian Authority, which governs parts of the Israeli-occupied West Bank.
Specifically, Carney said that President Mahmoud Abbas would need to commit to general elections in 2026 in which the militant group Hamas would be barred from participation, and that any future Palestinian state must be fully demilitarised.
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Ottawa’s announcement comes on the heels of similar moves by the United Kingdom and France — part of a broader diplomatic realignment in the West as Israel’s military campaign in Gaza draws increasing scrutiny. More than 38,000 Palestinians have been killed since Israel launched its offensive in response to Hamas’s October 7 attacks, according to Gaza’s health ministry.
While the United States has historically backed Israel and blocked multiple UN efforts to recognise Palestinian statehood, Trump’s unusually sharp rebuke of a close neighbour and economic partner could signal a more confrontational stance going into the final phase of North American trade talks.
Crossroads for Canadian foreign policy
Carney’s government has so far declined to comment on Trump’s remarks. But analysts say the clash illustrates the high-wire act Ottawa is attempting: balancing its economic ties with Washington while aligning more closely with the European Union on Middle East diplomacy.
Canada has long supported the principle of a two-state solution but, until now, had held off on formal recognition — a policy it shared with other G7 nations. With three members now breaking ranks, pressure is mounting on others, including Germany and Japan, to clarify their positions.
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The Palestinian Authority welcomed the Canadian announcement, calling it a “step in the right direction” and urging broader international recognition.
But Israel’s foreign ministry condemned the move, accusing Carney of “rewarding terror” and undermining the prospects for peace. Israeli officials maintain that any Palestinian statehood bid must come through bilateral negotiations, not unilateral declarations
