Trump Sinks Trade Negotiations With Canada After They Announce Intention to Recognize Palestinian State: ‘Will Make It Very Hard’

Adrian Wyld/The Canadian Press via AP
President Donald Trump warned Canada on Wednesday evening it would now be “very hard” for the two countries to come to a trade agreement after Canadian Prime Minister Mark Carney announced his intention to recognize a Palestinian state.
“Wow! Canada has just announced that it is backing statehood for Palestine,” wrote Trump in a late-night Truth Social post. “That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!”
Earlier on Wednesday, Canada announced its intention to recognize a Palestinian state at the 80th Session of the United Nations General Assembly in September.
“Canada has long been committed to a two-state solution – an independent, viable, and sovereign Palestinian state living side by side with the State of Israel in peace and security,” said the Canadian prime minister in a statement. “For decades, it was hoped that this outcome would be achieved as part of a peace process built around a negotiated settlement between the Israeli government and the Palestinian Authority. Regrettably, this approach is no longer tenable.”
Carney cited the ongoing “humanitarian disaster” in Gaza, Israeli “settler violence against Palestinians,” and “the pervasive threat of Hamas terrorism” as reasons for the move, declaring, “For these reasons, Canada intends to recognize the State of Palestine.”
The prime minister added, however, that Canada’s recognition of Palestine would be predicated on Palestinian Authority President Mahmoud Abbas holding general elections in 2026, excluding Hamas from said elections, and working “to demilitarize the Palestinian state.”
Canada has been engaged in trade negotiations with the Trump administration since February, when Trump announced a 25% tariff and antagonized the country with threats of annexation.
In June, Trump announced he was “terminating ALL discussions on Trade with Canada, effective immediately,” before weeks later threatening a 35% import tax on all Canadian goods.