President Donald Trump has ramped up his trade war with Canada a day early in response to Canada‘s vow to support Palestinian statehood.
Trump is set to impose a 35 percent tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement if he and Carney cannot make a deal by his August 1 deadline.
But Trump warned in a late night Truth Social post it would be ‘very hard’ to make a deal with Canada if Carney proceeds with his intention to recognize Palestine.
‘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 wrote.
Trump’s 35 percent tariff was announced amidst a string of surprise modifications to his reciprocal tariffs on Thursday.
As per the new tariffs, Switzerland has been hit with a 39 percent tariff, Syria was lobbed a 41 percent tariff, Laos and Myanmar each received a 40 percent tariff and Iraq and Serbia joined Canada with a 35 percent tariff.
Algeria, Bosnia and Herzegovina, Libya and South Africa all were handed 30 percent tariffs.
Canadian Prime Minister Mark Carney previously said tariff negotiations with Washington had been constructive, but the talks may not conclude by the deadline.
President Donald Trump has ramped up his trade war with Canada a day early in response to Canada’s vow to support Palestinian statehood
Talks between the two countries were at an intense phase, he added, but a deal that would remove all US tariffs was unlikely.
Canada is the second largest US trading partner after Mexico, and the largest buyer of U.S. exports.
It bought $349.4 billion of US goods last year and exported $412.7 billion to the US, according to US Census Bureau data.
Canada is also the top supplier of steel and aluminum to the United States, and faces tariffs on both metals as well as on vehicle exports.
Last month, Carney’s government scrapped a planned digital services tax targeting US technology firms after Trump abruptly called off trade talks saying the tax was a ‘blatant attack.’
Carney followed France and Britain on Wednesday when he said his country was planning to recognize the State of Palestine at a meeting of the United Nations in September.
In announcing the decision, Carney spoke of the reality on the ground, including starvation in Gaza.
‘Canada condemns the fact that the Israeli government has allowed a catastrophe to unfold in Gaza,’ he said.
Carney followed France and Britain on Wednesday when he said his country was planning to recognize the State of Palestine at a meeting of the United Nations in September
Scenes of hunger and starvation have trickled out of Gaza amid a longstanding Israeli blockade which is preventing supplies from entering the territory en masse
Israel and the United States, Israel’s closest ally, both rejected Carney’s comments.
He convened a Cabinet meeting to discuss the situation in the battered Palestinian territory.
Carney was inspired to make a change after discussing the crisis with British Prime Minister Keir Starmer, who announced a similar move on Tuesday.
Scenes of hunger and starvation have trickled out of Gaza amid a longstanding Israeli blockade which is preventing supplies from entering the territory en masse.
‘The level of human suffering in Gaza is intolerable,’ Carney said.
‘Canada intends to recognize the State of Palestine at the 80th Session of the United Nations General Assembly in September 2025.’
Carney said the intention is predicated on the Palestinian Authority ‘holding general elections in 2026 in which Hamas can play no part, and to demilitarize the Palestinian state.’
Pressure to formally recognize Palestinian statehood has mounted since French President Emmanuel Macron announced that his country will become the first major Western power to do so in September.
As with France and the U.K., Canadian recognition would be largely symbolic, but it’s part of a broader global shift against Israel and could increase diplomatic pressure for an end to the conflict.
More than 140 countries recognize a Palestinian state, including a dozen in Europe.
Macron’s announcement last week made France the first Group of Seven country – and the largest in Europe – to take that step.
Canada has long supported the idea of an independent Palestinian state existing alongside Israel, but has said recognition should come as part of a negotiated two–state solution to the conflict.
