Trump to Canada: Recognizing Palestinian state makes trade deal ‘very hard’
By Sean Previl
Foreign Affairs Minister Anita Anand said Jordan was helping to drop Canadian aid, and posted a photo of pallets with Canadian flags taped to them.
Carney’s decision followed France and Britain also indicating they would recognize a Palestinian state, though French President Emmanuel Macron said the recognition would come without conditions.
Britain, however, said its recognition would come unless Israel takes substantive steps to end the “appalling situation” in Gaza and meets other conditions.
Trump has previously said recognition of Palestinian statehood would reward the Palestinian militant group Hamas.
“You’re rewarding Hamas if you do that. I don’t think they should be rewarded,” he said on board Air Force One on Tuesday.
White House press secretary Karoline Leavitt added that recognition of Palestinian statehood could have further impacts on ending the conflict.
“He (Trump) feels as though that’s rewarding Hamas at a time where Hamas is the true impediment to a ceasefire and to the release of all the hostages,” Leavitt said Thursday.
U.S. State Department deputy spokesperson Tommy Pigott told reporters recognition could “hurt the prospect for peace.”
The U.S. also imposed sanctions on Thursday on Palestinian Authority officials and members of the Palestine Liberation Organization, saying the groups were undermining peace efforts.
Trump’s comments Thursday come just before an Aug. 1 deadline set by him for countries to reach trade deals with the U.S. or face higher tariffs.
Trump is set to impose a 35 per cent tariff on all Canadian goods that are not covered by the Canada-U.S.-Mexico trade agreement (CUSMA) if a new trade and security agreement is not reached by the deadline.
The prime minister said “constructive” negotiations with the Americans were ongoing, but cautioned they may not conclude by Aug. 1.
“These are complex, they’re comprehensive, they’re constructive negotiations with the Americans (that) are ongoing,” Carney said. “It’s possible that they may not conclude by the first of August, but we’ll see.”
Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S. exports. It bought $349.4 billion of U.S. goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data.
The U.S. has levied a 50 per cent tariff on steel and aluminum products and 25 per cent on the automotive industry, and plans to implement a 50 per cent on copper imports starting Friday.
Last month, Carney’s government scrapped a planned digital services tax targeting U.S. technology firms after Trump abruptly called off trade talks, saying the tax was a “blatant attack.”
— with files from Global News’ Sean Boynton, Reuters and The Canadian Press
By Sean Previl
Global News
Posted July 31, 2025
Posted July 31, 2025
U.S. President Donald Trump says Canada’s intent to recognize a Palestinian state will make it “very hard” for the two countries to negotiate a 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,” Trump said on Truth Social.
The president made the post on his social media platform early on Thursday, hours after Prime Minister Mark Carney announced that Canada intends to recognize Palestinian statehood at the United Nations General Assembly in September.
That recognition, however, is conditional, Carney said Wednesday evening.
“This intention is predicated on the Palestinian Authority’s commitment to much-needed reforms, including commitments by the Palestinian Authority’s President (Mahmoud) Abbas, to fundamentally reform its governance, to hold general elections in 2026 in which Hamas can play no part, and to demilitarize the Palestinian state,” Carney said.
Israel and the United States, Israel’s closest ally, both rejected Carney’s comments.
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The Prime Minister’s Office said Carney “reaffirmed Canada’s commitment to a two-state solution” in a call with Abbas but also informed him of the conditions surrounding Canada recognizing Palestinian statehood.
“Prime Minister Carney welcomed President Abbas’ commitment to these reforms,” the readout says.
In his comments Wednesday, Carney said actions such as increased settlements by Israel and restrictions on aid into Gaza have undermined the hope of achieving a two-state solution through a negotiated process.
He cited the factors as among those weighing on his decision for Canada’s planned recognition of Palestinian statehood.
Those aid restrictions appeared to slightly loosen last week, allowing for food and medicine to reach Gaza and on Thursday, Canadian aid was among the packages airdropped.
“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 said on Truth Social.
The president made the post on his social media platform early on Thursday, hours after Prime Minister Mark Carney announced that Canada intends to recognize Palestinian statehood at the United Nations General Assembly in September.
That recognition, however, is conditional, Carney said Wednesday evening.
“This intention is predicated on the Palestinian Authority’s commitment to much-needed reforms, including commitments by the Palestinian Authority’s President (Mahmoud) Abbas, to fundamentally reform its governance, to hold general elections in 2026 in which Hamas can play no part, and to demilitarize the Palestinian state,” Carney said.
Israel and the United States, Israel’s closest ally, both rejected Carney’s comments.
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The Prime Minister’s Office said Carney “reaffirmed Canada’s commitment to a two-state solution” in a call with Abbas but also informed him of the conditions surrounding Canada recognizing Palestinian statehood.
“Prime Minister Carney welcomed President Abbas’ commitment to these reforms,” the readout says.
In his comments Wednesday, Carney said actions such as increased settlements by Israel and restrictions on aid into Gaza have undermined the hope of achieving a two-state solution through a negotiated process.
He cited the factors as among those weighing on his decision for Canada’s planned recognition of Palestinian statehood.
Those aid restrictions appeared to slightly loosen last week, allowing for food and medicine to reach Gaza and on Thursday, Canadian aid was among the packages airdropped.
Foreign Affairs Minister Anita Anand said Jordan was helping to drop Canadian aid, and posted a photo of pallets with Canadian flags taped to them.
Carney’s decision followed France and Britain also indicating they would recognize a Palestinian state, though French President Emmanuel Macron said the recognition would come without conditions.
Britain, however, said its recognition would come unless Israel takes substantive steps to end the “appalling situation” in Gaza and meets other conditions.
Trump has previously said recognition of Palestinian statehood would reward the Palestinian militant group Hamas.
“You’re rewarding Hamas if you do that. I don’t think they should be rewarded,” he said on board Air Force One on Tuesday.
White House press secretary Karoline Leavitt added that recognition of Palestinian statehood could have further impacts on ending the conflict.
“He (Trump) feels as though that’s rewarding Hamas at a time where Hamas is the true impediment to a ceasefire and to the release of all the hostages,” Leavitt said Thursday.
U.S. State Department deputy spokesperson Tommy Pigott told reporters recognition could “hurt the prospect for peace.”
The U.S. also imposed sanctions on Thursday on Palestinian Authority officials and members of the Palestine Liberation Organization, saying the groups were undermining peace efforts.
Trump’s comments Thursday come just before an Aug. 1 deadline set by him for countries to reach trade deals with the U.S. or face higher tariffs.
Trump is set to impose a 35 per cent tariff on all Canadian goods that are not covered by the Canada-U.S.-Mexico trade agreement (CUSMA) if a new trade and security agreement is not reached by the deadline.
The prime minister said “constructive” negotiations with the Americans were ongoing, but cautioned they may not conclude by Aug. 1.
“These are complex, they’re comprehensive, they’re constructive negotiations with the Americans (that) are ongoing,” Carney said. “It’s possible that they may not conclude by the first of August, but we’ll see.”
Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S. exports. It bought $349.4 billion of U.S. goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data.
The U.S. has levied a 50 per cent tariff on steel and aluminum products and 25 per cent on the automotive industry, and plans to implement a 50 per cent on copper imports starting Friday.
Last month, Carney’s government scrapped a planned digital services tax targeting U.S. technology firms after Trump abruptly called off trade talks, saying the tax was a “blatant attack.”
— with files from Global News’ Sean Boynton, Reuters and The Canadian Press
Story by Andrew Buncombe
iNEWS
Issued on: 31/07/2025
Donald Trump and Canadian Prime Minister Mark Carney at the G7 Leaders’ Summit in June (Photo: Getty)
When Donald Trump returned to the White House in January he quickly started attacking one of America’s closest allies – Canada.
He targeted not only individuals such as Justin Trudeau, but suggested all the country’s 41 million citizens be annexed into becoming the US’s 51st state.
When he started threatening tariffs of as much as 25 per cent, many Canadians expressed fury at what they felt was an act of utter betrayal.
Six months on, Trump is at it again, with new threats for America’s northern neighbour, as the 1 August deadline to reach a trade deal ticks closer.
“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump said on social media. “That will make it very hard for us to make a trade deal with them.”
The announcement by Prime Minister Mark Carney that he would recognise a state of Palestine came as concern about the suffering of civilians in Gaza has intensified, the death toll has passed 60,000, and images of starving and utterly malnourished children have dominated some of the world’s media.
“The level of human suffering in Gaza is intolerable and it is rapidly deteriorating,” Carney said. “The prospect of a Palestinian state is being eroded before our eyes.”
Related video: Is a U.S.-Canada trade deal in jeopardy after Trump expresses doubt ahead of deadline? (Global News)His move followed a similar announcement from the UK and France. Indeed, 147 of the UN’s 193 member states recognise Palestine, which is currently a “permanent observer state” at the world body.
When Trump met Keir Starmer in Scotland last weekend, he said for the first time there was “real starvation” in Gaza and urged Israel to allow “every ounce of food” into the Palestinian enclave.
Since the 7 Oct 2023 Hamas attacks, Israel has slowly seen international support dwindle as its military response has often been seen as disproportionate.
At the same time, the UN and other groups have accused it of failing to permit the sufficient flow of aid into Gaza.
This is a claim Israel rejects, but every day there are reports of Palestinians being killed as they seek to obtain aid from the controversial Gaza Humanitarian Foundation, a group backed by the Israeli and US governments which took over responsibility for aid distribution earlier this year.
The Hamas-run health ministry says 91 people have been killed while seeking aid in the last 24 hours.
For all Benjamin Netanyahu’s insistence Israel is doing everything it can to help Gazans, he has fewer and fewer allies.
Trump is certainly the most powerful of them and has continued to back a ceasefire in Gaza that could allow more aid and the return of the remaining hostages. Netanyahu met Trump’s envoy Steve Witkoff on Thursday but there was no immediate talk of a breakthrough.
The US has a long history of giving political cover to Israel, vetoing UN critical resolutions and sending billions of dollars of weapons and aid.
Trump now has no easy way out. With even members of his own Maga base, such as Marjorie Taylor Greene saying what is happening in Gaza is “genocide”, he faces a divided Republican Party.
The US president did manage to broker the Abraham Accords during his first term, which saw diplomatic relationships established between Israel and a series of Muslim nations, namely the United Arab Emirates, Bahrain, Morocco and Sudan.
But he is not known for his love of slow and difficult diplomacy. He much prefers to announce “deals” and “wins” with a showman’s flourish, hoping that if he talks loudly enough nobody will pay attention to the small print.
In terms of Gaza, there’s no quick or easy way for the US to go.
Better then for him to reach for the distraction playbook and attack Canada, hoping to avoid taking responsibility for the horrors in Gaza and lining up an easy scapegoat should the trade deal fall through.
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