Newsletters
U.S. President Donald Trump threatened Wednesday to complicate trade negotiations with Canada after Prime Minister Mark Carney announced plans to formally recognize Palestinian statehood at the United Nations General Assembly in September.
"Wow! Canada has just announced that it is backing statehood for Palestine," Trump wrote on his Truth Social platform. "That will make it very hard for us to make a Trade Deal with them."
The warning came hours after Carney's announcement, marking a significant shift in Canadian foreign policy that places the country among three G7 nations planning Palestinian recognition this fall.
Trump's immediate response signals potential economic repercussions for Canada's diplomatic stance, with the president directly connecting Palestinian recognition to bilateral trade negotiations.
The threat underscores Trump's approach of leveraging economic relationships to influence allies' foreign policy positions, particularly regarding Middle East issues.
When asked by reporters if Canada could change its position before the U.N. meeting, Carney said: "There's a scenario (but) possibly one that I can't imagine."
Carney said Canada's decision reflects the need to preserve the two-state solution, which he described as "being eroded before our eyes."
1 min read
"Canada intends to recognize the State of Palestine at the 80th Session of the United Nations General Assembly in September 2025," Carney said during the announcement.
The move follows similar commitments from France and the United Kingdom announced in recent days, with Carney saying the worsening suffering of civilians in Gaza left "no room for delay in coordinated international action to support peace."
Israel blasted Canada's announcement as part of a "distorted campaign of international pressure." The Israeli embassy in Ottawa said, "recognizing a Palestinian state in the absence of accountable government, functioning institutions, or benevolent leadership, rewards and legitimizes the monstrous barbarity of Hamas on October 7, 2023."
Palestinian Authority President Mahmoud Abbas welcomed the announcement as a "historic" decision, while France said the countries would work together "to revive the prospect of peace in the region."
Canada's intention "is predicated on the Palestinian Authority's commitment to much-needed reforms," Carney said, including Abbas' pledge to "hold general elections in 2026 in which Hamas can play no part, and to demilitarize the Palestinian state."
2 min read
