US President Donald Trump threatened Thursday that Canada’s decision to recognize a Palestinian state could impede ongoing, intensive talks over a US-Canadian 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. Oh’ Canada!!!” Trump wrote on Thursday, in one of several Truth Social posts on trade.
The post appeared to be a departure from remarks he made on recent decisions by the United Kingdom and France to recognize a Palestinian state. In those cases, he noted that he disagreed with the moves, which would “reward” Hamas, but that he would not seek to influence the decisions.
Canadian Prime Minister Mark Carney said on Wednesday that his country would recognize a Palestinian state in September, predicated on the West Bank-based Palestinian Authority undergoing substantial reforms. He said the Israel-Hamas war in Gaza and the humanitarian crisis in the enclave had motivated the decision.
“Canada condemns the fact that the Israeli government has allowed a catastrophe to unfold in Gaza,” he said.
The decision from Ottawa comes in the wake of similar pronouncements by London and Paris. UK Prime Minister Keir Starmer said Britain would recognize a state of Palestine in September unless Israel agreed to a ceasefire in Gaza and restarted the peace process. French President Emmanuel Macron did not attach conditions to his decision.
Israel has said that the moves, following the Hamas-led October 7, 2023, attack that began the war, are a reward for terror.
A Canadian umbrella Jewish group, the Centre for Israel and Jewish Affairs, also condemned Carney’s announcement, saying it is “predicated on misplaced faith in vague commitments by Palestinian Authority President Mahmoud Abbas, notorious for his corruption, lack of democratic credibility, and funding of terrorists.”
“Extending recognition absent real change on the ground is a recipe for another failed Palestinian pseudo-state controlled by terrorists,” CIJA CEO Noah Shack’s statement added. “It is deeply concerning that the government did not link statehood recognition to the removal of Hamas and the return of Israeli hostages. This only emboldens Hamas and condemns Palestinians and Israelis — including the hostages and their families — to more suffering.”
Trump has echoed Israeli criticism of recognizing a Palestinian state. But his post on Thursday seemed to be his first signal of retribution against countries that take the step.
Trump is a fan of using trade to influence other countries’ policies. He instituted a range of tariffs across a broad swath of countries earlier this year, and is currently negotiating deals with a host of trading partners seeking to avoid barriers to entry to the US market.
Trump is currently penalizing Brazil in a number of ways, including a 50% tariff, for the corruption case against former president Jair Bolsonaro.
Deals with the EU and Britain had been announced prior to their Palestine announcements. But talks with Canada are ongoing, and Trump — who has also mused about annexing the country — is set to impose a 35% tariff on all Canadian goods not covered by a preexisting trade agreement if the countries do not reach a deal by a Friday deadline.
Canada is the second-largest US trading partner after Mexico, and the largest buyer of US exports. Reaching a deal is seen as a top priority in Ottawa.
Zev Stub and Reuters contributed to this report.