Trump threatens Canada trade deal over support for Palestinian state
As Trump's self-imposed tariff deadline looms, the president blasted Canadian President Mark Carney 's decision to join the U.K. and France in announcing plans to recognize a Palestinian state in September.
'Wow! Canada has just announced that it is backing statehood for Palestine,' Trump wrote on Truth Social early Thursday morning. 'That will make it very hard for us to make a Trade Deal with them. Oh' Canada!!!'
Carney announced Wednesday that Canada has 'long been committed to a two-state solution' that would see would see an independent Palestinian state 'living side by side' with the state of Israel.
The move would further isolate the U.S. from key allies as international pressure grows over the starvation crisis in Gaza, fueled by Israel's blockade of humanitarian aid.
Just hours earlier, the U.S. Senate rejected two resolutions introduced by Vermont Senator Bernie Sanders to block arms sales to Israel. While the measures failed, more than half of Senate Democrats supported them, signaling a growing shift in Washington's stance toward the war in Gaza.
Before Carney's announcement, both the U.S. and Israel had previously criticized similar declarations by France and Britain, saying that they reward Hamas and do not help efforts to achieve a ceasefire.
As Trump threatened to blow up trade talks with Canada, his Middle East envoy Steve Witkoff traveled to Israel on Wednesday, the White House confirmed to The Independent.
Witkoff could also travel to Gaza and visit the Gaza Humanitarian Foundation aid centers, a U.S. official told Axios. The White House has not publicly confirmed the report.
Trump's warning to Canada comes hours before he is set to reinstate his 'Liberation Day' tariffs on Friday for countries that have not struck trade deals with the U.S. The president has often pressured allies to change policies by threatening higher tariffs or stonewalling trade negotiations.
Trump set an August 1 deadline for Canada to reach a trade deal with the U.S., with the two nations embroiled in an on-again, off-again trade war for months.
Failing to do so would mean Canada could be slapped with a 35 percent tariff for goods that don't comply with the Canada-U.S.-Mexico Agreement.
Carney previously hinted last week that the Canadian government is in no rush to finalize a deal by Trump's deadline, noting the objective is 'not to reach a deal, whatever it costs.'
Countries including the U.K., South Korea, and Japan, as well as the European Union trading bloc, have recently finalized trade deals, with specific rates to be applied for the goods they sell to the U.S.
Meanwhile, the rest of the world stands in limbo, with Trump being clear that those who do not reach deals by the deadline will face higher levies.
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