U.S. President Donald Trump says Canada’s intent to recognize a Palestinian state will make it “very hard” for the two countries to negotiate a trade deal.
“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,” Trump said on Truth Social.
The president made the post on his social media platform early on Thursday, hours after Prime Minister Mark Carney announced that Canada intends to recognize Palestinian statehood at the United Nations General Assembly in September.
That recognition, however, is conditional, Carney said Wednesday evening.
“This intention is predicated on the Palestinian Authority’s commitment to much-needed reforms, including commitments by the Palestinian Authority’s President (Mahmoud) Abbas, to fundamentally reform its governance, to hold general elections in 2026 in which Hamas can play no part, and to demilitarize the Palestinian state,” Carney said.
Israel and the United States, Israel’s closest ally, both rejected Carney’s comments.
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The Prime Minister’s Office said Carney “reaffirmed Canada’s commitment to a two-state solution” in a call with Abbas but also informed him of the conditions surrounding Canada recognizing Palestinian statehood.
“Prime Minister Carney welcomed President Abbas’ commitment to these reforms,” the readout says.
In his comments Wednesday, Carney said actions such as increased settlements by Israel and restrictions on aid into Gaza have undermined the hope of achieving a two-state solution through a negotiated process.
He cited the factors as among those weighing on his decision for Canada’s planned recognition of Palestinian statehood.
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Those aid restrictions appeared to slightly loosen last week, allowing for food and medicine to reach Gaza and on Thursday, Canadian aid was among the packages airdropped.
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Foreign Affairs Minister Anita Anand said Jordan was helping to drop Canadian aid, and posted a photo of pallets with Canadian flags taped to them.
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Carney’s decision followed France and Britain also indicating they would recognize a Palestinian state, though French President Emmanuel Macron said the recognition would come without conditions.
Britain, however, said its recognition would come unless Israel takes substantive steps to end the “appalling situation” in Gaza and meets other conditions.
Trump has previously said recognition of Palestinian statehood would reward the Palestinian militant group Hamas.
“You’re rewarding Hamas if you do that. I don’t think they should be rewarded,” he said on board Air Force One on Tuesday.
The U.S. also imposed sanctions on Thursday on Palestinian Authority officials and members of the Palestine Liberation Organization, saying the groups were undermining peace efforts.
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Trump’s comments Thursday come just before an Aug. 1 deadline set by him for countries to reach trade deals with the U.S. or face higher tariffs.
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Trump is set to impose a 35 per cent tariff on all Canadian goods that are not covered by the Canada-U.S.-Mexico trade agreement (CUSMA) if a new trade and security agreement is not reached by the deadline.
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The prime minister said “constructive” negotiations with the Americans were ongoing, but cautioned they may not conclude by Aug. 1.
“These are complex, they’re comprehensive, they’re constructive negotiations with the Americans (that) are ongoing,” Carney said. “It’s possible that they may not conclude by the first of August, but we’ll see.”
Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S. exports. It bought $349.4 billion of U.S. goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data.
The U.S. has levied a 50 per cent tariff on steel and aluminum products and 25 per cent on the automotive industry, and plans to implement a 50 per cent on copper imports starting Friday.
Last month, Carney’s government scrapped a planned digital services tax targeting U.S. technology firms after Trump abruptly called off trade talks, saying the tax was a “blatant attack.”
— with files from Reuters and The Canadian Press
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