Trump: Canada backing Palestinian statehood makes any trade deal "very hard"
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Canadian Prime Minister Mark Carney and President Trump at the White House in May. Photo: Jim Watson/AFP via Getty Images
President Trump suggested early Thursday that he won't make a trade deal with Canada after Prime Minister Mark Carney said he intends to recognize the State of Palestine, subject to certain commitments.
Why it matters: The threat comes one day before Trump's Aug. 1 deadline for countries to make a trade deal with the U.S. or face tariffs — in Canada's case, a 35% levy on goods imported from the North American neighbor and significant trading partner.
What he's saying: "Wow! Canada has just announced that it is backing statehood for Palestine," Trump wrote on Truth Social. "That will make it very hard for us to make a Trade Deal with them. Oh' Canada!!!"
- Later Thursday, taking questions from reporters at the White House, Trump said "I didn't like what they said, but that's their opinion."
- "Not a dealbreaker, but we haven't spoken to Canada today."
Context: Carney said Wednesday he would take the action at the UN General Assembly in September, subject to a set of commitments by the Palestinian Authority.
- Carney's joins two other close U.S. allies in taking the action, further isolating the Trump administration and Israel's government internationally, per Axios' Barak Ravid.
- France announced a similar plan and the U.K. said it would do the same unless Israel moves to improve the humanitarian situation in Gaza and commits to a renewed peace process with the Palestinians.
The big picture: The U.S. and Canada have had an off-on trade war and for months.
- Just last month, Trump threatened to cease trade talks with Canada and impose tariffs due to a digital services tax that Canadian officials later rescinded to advance broader negotiations.
Between the lines: Carney suggested Wednesday that trade talks with the U.S. may not be wrapped up by the Friday deadline as officials continued to discuss "a broad variety" of subjects.
- "There are many areas for cooperation between Canada and the United States, including defense spending, security spending, investments," he said during a briefing in Ottawa. "Which is one of the reasons why we're having these broader discussions."
- Representatives from the Canadian prime minister's office did not immediately respond to Axios' request for comment early Thursday.
The intrigue: Trump announced a 90-day extension of talks with Mexico on Thursday, but didn't indicate Canada would get any such relief.
Go deeper: Trump ends de minimis tariff exemption, sets copper and Brazil levies
Editor's note: This article has been updated with new details throughout.
