President Trump is tossing cold water on hopes for a new US-Canada trade deal, just as a deadline looms for higher American tariffs. At issue, per the Washington Post: Canada's decision to back Palestinian statehood at the United Nations this September, provided the Palestinian Authority meets certain conditions, including a Hamas-free election in 2026. Posting after midnight on Truth Social, Trump had this to say:
- "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!!!"
Canadian Prime Minister Mark Carney announced the policy shift on Wednesday, putting Ottawa in line with France and Britain as international outrage over the humanitarian crisis in Gaza grows. ABC News notes that while Trump has signaled relative indifference to the intentions of Emmanuel Macron and Keir Starmer to recognize a Palestinian state, his move to tie Carney's to trade negotiations marks a departure—and it's a last-minute one. The US and Canada have been scrambling to resolve months of tense negotiations before Friday, when Trump's threatened 35% tariffs on Canadian steel, aluminum, vehicles, and more could hit—a serious blow for a country that sends over three-quarters of its exports south of the border.
Despite some Canadian concessions, Trump has remained unpredictable, sometimes praising progress, other times threatening to slap on tariffs with little warning. Carney, who took office earlier this year after campaigning on an anti-Trump platform, has tried a mix of flattery and pushback, but the relationship remains rocky. Earlier, he declared the traditional US-Canada relationship "over" and promised to retaliate if needed. Canada's announcement drew cheers from the Palestinian Authority and a sharp rebuke from Israel, which called it a "reward for Hamas," per the Post. Trump, for his part, has dismissed the idea of recognizing Palestine, arguing it could embolden Hamas.
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