Trump criticized Canada’s plan to recognize a Palestinian state during trade talks

‘That will make it very hard for us to make a Trade Deal with them,’ says U.S. president in late night post

U.S. President Donald Trump said Thursday Canada’s intent to Recognize a Palestinian State will make it “very hard” for the two countries to negotiate a trade deal, but also said it may not be a “dealbreaker.”

“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.

Trump later told reporters at the White House that Canada’s position was “not a dealbreaker” but again voiced his displeasure.

“We’re going to see,” he said at an unrelated event Thursday. “I didn’t like what they said, but you know, that’s their opinion. I didn’t like that.

“We haven’t spoken to Canada today. He’s called, and we’ll see,” he added, without specifying who he was referring to.

Canada-U.S. Trade Minister Dominic LeBlanc is in Washington this week for ongoing negotiations toward a deal. His office declined to share an update on those talks when asked by Global News on Thursday.

Trump on Thursday suggested many of the same grievances he’s long voiced about Canada, including its supply management system for the dairy industry and military spending, remain.

“They have to pay a fair rate,” he said. “They’ve been very, very poorly led, and all we want is fairness for our country.”

“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.

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. On Thursday, Canadian aid was among the packages airdropped.

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.”