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Trump Responds to Canada’s Recognition of Palestinian Statehood, Cites Trade Challenges

Updated: July 31, 2025, 10:36 AM IST

Former U.S. President Donald Trump reacted sharply on Monday to Canada’s impending recognition of Palestinian statehood during the upcoming United Nations General Assembly in September. Trump warned that this diplomatic move could complicate the already strained trade relationship between the two North American nations.

“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!!!” Trump stated on his social media platform, Truth Social. This announcement follows Canada’s intent to formally recognize Palestine, which Prime Minister Mark Carney described as necessary in light of increasing civilian suffering amid the ongoing Gaza conflict.

In his announcement, Carney emphasized that “there was no room for delay” in this action, highlighting that “preserving a two-state solution means standing with all people who choose peace over violence.” The Canadian Prime Minister’s remarks signal a firm stance, aligning with other G7 nations like the UK and France in support of Palestine.

Tensions regarding trade have escalated, particularly with a looming 35% tariff on Canadian exports to the U.S. unless negotiations reach an agreement. Trump, who previously criticized Canada as “a very difficult country to deal with,” has set a tight deadline for these tariffs, refusing to extend it despite other countries successfully brokering agreements to lower tariffs in exchange for market access.

The diplomatic rift is exacerbated by Trump’s administration’s firm support for Israel amid the ongoing conflict in Gaza, leaving Canada and the U.S. at odds on critical foreign policy issues. As negotiations and international relations evolve, the implications of Canada’s recognition of Palestine could significantly influence future trade discussions between the countries.

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