Trump makes threat against Canada after country pledges to recognize Palestinian state

President Donald Trump threatened to walk away from a potential trade deal with Canada after Prime Minister Mark Carney vowed to recognize a Palestinian state.

Trump has been meeting with Carney to reach an agreement before the United States imposes a 35 percent tariff on all goods from its northern neighbor on August 1.

But Carney's announcement on Wednesday that he will formally recognize the state of Palestine in September has apparently thrown a wrench in the negotiations.

'Wow! Canada has just announced that it is backing statehood for Palestine,' Trump wrote on his Truth Social page Wednesday night.

'That will make it very hard for us to make a Trade Deal with them. Oh Canada!!'

The tariff negotiations had been constructive up to this point, Carney's office said on Wednesday, though he warned the talks may not conclude by the deadline on Friday.

Amid the negotiations, Carney was apparently inspired to make the change to foreign policy after discussing the ongoing crisis in Gaza with British Prime Minister Keir Starmer, who announced a similar move on Tuesday.

However the United States has already brokered a trade agreement with the United Kingdom. It is now unclear whether Starmer's new support for a Palestinian state will affect relations with the country.

President Donald Trump threatened to withhold a trade deal with Canada after Prime Minister Mark Carney vowed to recognize a Palestinian state

The Canadian Prime Minister announced Wednesday he will formally recognize the state of Palestine in September

President Trump has railed against the recent pressure to formally recognize Palestinian statehood amid scenes of starvation in Gaza.

'As the president stated, he would be rewarding Hamas if he recognizes a Palestinian state, and he doesn´t think they should be rewarded,' a White House official told Reuters, speaking on condition of anonymity.

'So he is not going to do that. President Trump's focus is on getting people fed [in Gaza].'

But for Carney, 'the level of human suffering in Gaza is intolerable.

'Canada intends to recognize the State of Palestine at the 80th Session of the United Nations General Assembly in September 2025,' he announced, saying he has convened a Cabinet meeting to discuss the situation in the battered Palestinian territory.

'Preserving a two-state solution means standing with all people who choose peace over violence or terrorism and honoring their innate desire for the peaceful co-existence of Israeli and Palestinian states as the only roadmap for a secure future,' the prime minister added in a statement posted online.

'We will intensify our efforts with our international partners to develop a credible peace plan that establishes governance and security arrangements for Palestine and ensures the delivery of humanitarian aid at the necessary scale to Gaza,' he vowed.

'Canada will be a constructive partner in building a just, meaningful and lasting peace in the region and a future that respects the dignity, security and aspirations of all Palestinians and Israelis.'

Carney said 'the level of human suffering in Gaza is intolerable'

Scenes of hunger and starvation have trickled out of Gaza amid a longstanding Israeli blockade which is preventing supplies from entering the territory en masse

A growing number of nations have voiced their support for a Palestinian state in recent weeks amid photos of the devastation in Gaza

Yet Carney said his country's support for a Palestinian state is predicated on the Palestinian Authority 'holding general elections in 2026 in which Hamas can play no part, and to demilitarize the Palestinian state.'

Carney also called for Hamas to release all of the hostages in its custody following the October 7, 2023 attack on Israel, following in the footsteps of the UK Prime Minister.

Starmer had previously said the country's recognition of Palestine would go ahead in September 'unless the Israeli government takes substantive steps to end the appalling situation in Gaza.'

That included Israel reaching a ceasefire, making clear there will be no annexation in the West Bank, and committing to a long-term peace process that delivers a two-state solution.

Like Carney, Starmer also called for Hamas to agree not to play any role in a Palestinian state's future governance and disarm. He also said it must accept a ceasefire in the ongoing war.

Carney was inspired to make a change after discussing the crisis with British Prime Minister Keir Starmer, who announced a similar move on Tuesday

Efforts to recognize a Palestinian state have mounted since French President Emmanuel Macron announced last week that his country would become the first major Western power to do so

More than 140 countries have also agreed to recognize a Palestinian state, including a dozen in Europe.

But Israeli Prime Minister Benjamin Netanyahu has railed against the efforts, saying Starmer has rewarded 'Hamas's monstrous terrorism' while punishing its victims.

'A jihadist state on Israel's border today will threaten Britain tomorrow. Appeasement towards jihadist terrorists always fails. It will fail you too. It will not happen,' the Israeli PM added.

Israel's Foreign Ministry echoed Netanyahu's words, adding: 'The shift in the British government's position at this time... constitutes a reward for Hamas and harms efforts to achieve a ceasefire in Gaza and a framework for the release of hostages.'