Trump Warns Canada: Backing Palestinian State Could Damage U.S. Trade Deal

President Donald Trump said overnight that it would be difficult to make a trade deal with Canada if it moved forward with plans to recognize a Palestinian state. 

Trump made the comments after Canada declared that it would join France and the United Kingdom in pushing for the affirmation of Palestinian statehood. The announcement came two days before Canada could be slapped with a 35% tariff if it does not reach a trade agreement with the United States before Trump’s Friday deadline. 

“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!!!” Trump posted on Truth Social around midnight. 

Canadian Prime Minister Mark Carney released a statement on Wednesday that said: “Canada intends to recognize the State of Palestine at the 80th Session of the United Nations General Assembly in September 2025.” 

“We reiterate that Hamas must immediately release all hostages taken in the horrific terrorist attack of October 7; that Hamas must disarm; and that Hamas must play no role in the future governance of Palestine,” Carney said. “Canada will always steadfastly support Israel’s existence as an independent state in the Middle East living in peace and security. 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.”

On Tuesday, Trump dismissed the idea of recognizing a Palestinian state, declaring that doing so would be equivalent to “rewarding” the Hamas terrorist group.

“Well, you could make the case that you’re rewarding people, that you’re rewarding Hamas if you do that,” Trump replied. “And I don’t think they should be rewarded. So I’m not in that camp, to be honest. We’ll let you know where we are, but I am not in that camp, because if you do that, you really are rewarding Hamas, and I’m not about to do that.”

Earlier this week, the Trump administration said it boycotted a United Nations conference promoting the two-state solution, calling the event a “publicity stunt” and an “insult.”

Trump has been using tariffs to apply pressure on countries he believes are acting in ways contrary to American interests. On Wednesday, he said that he would hit India with a 25% tariff and an additional unspecified “penalty” for continuing to buy oil and military equipment from Russia amid its war with Ukraine. His administration has made similar threats against China for its purchase of sanctioned Russian oil.