Donald Trump has warned that a US trade deal with Canada will now be 'very hard' after Canadian Prime Minister Mark Carney moved to recognise Palestinian statehood. The former US president reacted on social media, saying the decision 'rewards Hamas' and undermines prospects for a bilateral agreement.
Carney announced on Wednesday that Canada would formally recognise a Palestinian state at the UN General Assembly in September, provided the Palestinian Authority meets conditions including demilitarisation and holding elections without Hamas. He described the human suffering in Gaza as 'intolerable' and called for coordinated international action.
Trump is set to impose a 35% tariff on Canadian goods not covered by the US-Mexico-Canada Agreement if no deal is reached by Friday. Carney had previously acknowledged that avoiding tariffs entirely would be unlikely, despite Canada being the largest buyer of US exports.
The threat follows similar US pressure on other nations, including Brazil and India, as Trump uses tariffs to influence foreign policy. Portugal and Germany have also signalled consideration of Palestinian recognition, while the UK made a similar declaration earlier this week.
