US President Donald Trump has threatened to impose a 35% tariff on Canadian imports as tensions rise over Canada’s plan to recognise Palestinian statehood, CBC reported on July 31.

Trump’s warning came after Canadian Prime Minister Mark Carney announced that Canada would move to formally recognise a Palestinian state at the United Nations General Assembly in September, aligning with similar commitments made this week by France and the United Kingdom. Trump responded via his Truth Social platform, saying, “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!!!”

The two countries are currently negotiating a trade deal, with a self-imposed deadline of August 1. Trump’s administration has stated that if no agreement is reached, a 35% tariff will be applied to Canadian goods not covered by the US-Mexico-Canada trade agreement.

Carney said on July 30 that talks with the US have been “constructive”, but acknowledged that the deadline may be missed. He added that Canada’s move to recognise Palestinian statehood was a response to the deteriorating situation in Gaza and the need to preserve the possibility of a two-state solution.

“The suffering of civilians in Gaza leaves no room for delay in coordinated international action to support peace,” Carney said. He specified that Canada’s recognition would depend on reforms by the Palestinian Authority, including the exclusion of Hamas from future elections and the demilitarisation of a future Palestinian state.

The Trump administration has maintained strong support for Israel throughout its war on Gaza, rejecting calls for Palestinian statehood on the grounds that it would “reward Hamas.” According to UN figures, more than 60,000 Palestinians have been killed since the conflict began in 2023, with widespread destruction across Gaza.

Trump’s Middle East envoy Steve Witkoff is scheduled to arrive in Israel on July 31 for ceasefire and humanitarian aid discussions. Trump has previously acknowledged reports of starvation in Gaza, despite Israeli denials.

Carney’s announcement places Canada alongside France, which confirmed plans to formally recognise Palestine in September. British Prime Minister Keir Starmer has also indicated the UK will do the same, conditional on an Israeli ceasefire.

The Israeli embassy in Ottawa condemned Canada’s move, saying it “rewards and legitimises the monstrous barbarity of Hamas.” Palestinian Authority President Mahmoud Abbas welcomed the decision as “historic.”

Earlier on July 31, Italian Prime Minister Giorgia Meloni urged Israeli Prime Minister Benjamin Netanyahu to ensure the full and unhindered delivery of humanitarian aid to the Gaza Strip, amid what she described as an “unbearable and unjustifiable” humanitarian situation in the Palestinian enclave.