Trump threatens trade deal over Canada’s Palestine stance

July 31 (UPI) — President Donald Trump late Wednesday threatened the potential of a trade deal between the United States and Canada, after Ottawa said it would recognize a Palestinian state.

Canadian Prime Minister Mark Carney made the announcement earlier Wednesday, stating it would officially make the mostly symbolic move in September at the United Nations General Assembly.

Trump took to his Truth Social late Wednesday to deride the announcement.

“Wow!” he said in the statement. “That will make it very hard for us to make a Trade Deal with them.”

Canada and the United States have been in an escalating trade war since Trump came into office in January, and repeatedly slapped tariffs on the United States closest ally and one of its most significant trading partners, with an additional 35% tariff set to go into effect Friday unless a deal is struck first.

Carney, whose Liberal Party won the federal election in late April while riding an anti-Trump sentiment, has since sought to lessen Ottawa’s dependency on Washington, while referring to Trump’s stance toward his northern neighbor as a “betrayal.”

The two countries have been in trade negotiations since late June, after Carney shelved the Digital Services Tax, with expectations of having a deal finished by July 21.

During the press conference Wednesday when he announced the decision to recognize a Palestinian state, Carney said they were still working to reach a deal with the United States.

“Negotiations will continue until we do,” he said, adding that his top trade officials will remain in Washington “in pursuit of that goal.”

Trump has staunchly objected to a Palestinian state and has been an ally to Prime Minister Benjamin Netanyahu and his war against Hamas in Gaza.

The American president’s warning came as his so-called Liberation Day tariffs were set to go into effect for countries that have yet to make a deal with the United States.

Britain, the European Union and South Korea are among some of the countries that were successful in carving out deals with the American president ahead of Friday.

Trump has already imposed a 25% tariff on all Canadian imports not subject to the Canada-United States-Mexico Agreement, as well as a 10% tariff on energy products, a 25% tariff on all cars and trucks built north of the border and a 50% tariff on aluminum and steel imports.

Canada has responded with a slew of retaliatory tariffs, while specific provinces have banned alcohol from the United States.

Several countries have come forward to recognize a Palestinian state as the war has dragged on and the death toll has continued to climb.

Spain, Norway and Ireland formally recognized Palestinian statehood in late May, with France announcing it would recognize a Palestinian state late last week. And Britain has recently said it will recognize a Palestinian state if a cease-fire doesn’t come into effect soon.

The war began Oct. 7, 2023, when Hamas attacked Israel, killing 1,200 people and taking 251 others hostage.

Since then, Israel has devastated Gaza, killing some 60,000 people.