Tensions between the U.S. and Canada are escalating after President Donald Trump linked trade talks to Ottawa’s recognition of Palestinian statehood, threatening steep new tariffs if no deal is reached by 1 August.
Trump is set to impose a 35% tariff on all Canadian goods not covered by the U.S.-Mexico-Canada trade agreement if the two countries do not reach an agreement by the deadline.
The warning comes after Canada expressed support for Palestinian statehood, a move Trump called a major obstacle to trade negotiations.
“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," Trump posted on Truth Social.
Canadian Prime Minister Mark Carney had earlier described tariff negotiations as 'constructive' but acknowledged that a final deal may not be achieved before the deadline.
Canada remains the second-largest U.S. trading partner and its top buyer of exports, purchasing $349.4 billion in U.S. goods last year. However, it continues to face tariffs on steel, aluminium, and vehicle exports.
In a move seen as an olive branch last month, Canada dropped its digital services tax targeting U.S. tech firms. Still, Trump had already walked away from trade talks, labeling the tax a "blatant attack."
Carney joined France and Britain this week in declaring plans to recognize a Palestinian state at an upcoming United Nations meeting in September, citing the dire humanitarian crisis in Gaza.
“Canada condemns the fact that the Israeli government has allowed a catastrophe to unfold in Gaza,” Carney said.
Both the U.S. and Israel criticized his remarks. Carney’s office has not responded to Trump’s latest comments.
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Four people were killed, including a child, in Ukrainian strikes on the Russian port city of Novorossiysk overnight, according to the governor of the Krasnodar region. Ukraine's drone forces commander, Robert Brovdi, said Russian military ships were destroyed in the attacks.
A TV channel was struck during a live broadcast on Tuesday, Ukrainian President Volodymyr Zelenskyy said, as Russian strikes on Kyiv killed at least three people, the city's Mayor Vitali Klitschko said. Meanwhile, drones hit civilian infrastructure in Russia's southwestern Saratov region.
U.S. Central Command (CENTCOM) said its forces destroyed five Iranian crude oil carriers after the Islamic Revolutionary Guard Corps (IRGC) allegedly launched two ballistic missile attacks against a U.S. Navy warship over the past two days.
U.S. special envoys Jared Kushner and Steve Witkoff have held talks with Ukrainian President Volodymyr Zelenskyy in Kyiv on Sunday on efforts to end Russia’s war in Ukraine.
Indonesia has reopened Jakarta's main airport and four others after volcanic ash from Mount Anak Krakatau forced widespread flight cancellations, though fresh eruptions have kept authorities on alert.
Four people were killed, including a child, in Ukrainian strikes on the Russian port city of Novorossiysk overnight, according to the governor of the Krasnodar region. Ukraine's drone forces commander, Robert Brovdi, said Russian military ships were destroyed in the attacks.
Foreign direct investment in Georgia fell sharply in the second quarter of 2026, while China surged to become the country’s largest investor, highlighting Tbilisi’s deepening economic ties with Beijing as relations with the West remain strained.
North Korea has built a new uranium enrichment facility at its Yongbyon nuclear complex in the northwest of the country and begun operating an expanded site at Kangson, near the capital Pyongyang, the United Nation’s nuclear watchdog has said.
Israel has ordered the closure of the British consulate in East Jerusalem and banned 12 British nationals from entering the country, escalating a diplomatic row with London over Israeli settlements in the West Bank.
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