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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U.S. President Donald Trump called Iran’s response to Washington’s latest peace proposal “totally unacceptable” amid talks over ending the war and securing shipping through the Strait of Hormuz. A cargo vessel near Qatar was hit by a projectile as Kuwait reported hostile drones in its airspace.
Australia confirmed it will repatriate citizens from the MV Hondius cruise ship hit by a deadly hantavirus outbreak, with quarantine on arrival. Spain, France are evacuating nationals as three deaths are confirmed. In the U.S., two passengers have been isolated after testing positive for the virus.
Israeli Prime Minister Benjamin Netanyahu said Israel aims to eventually end its reliance on U.S. financial military support within the next decade. The decision signals a long-term shift in the country’s defence policy as it seeks to deepen ties with Gulf states.
Thaksin Shinawatra, Thailand’s billionaire former prime minister, has been released on parole from prison on Monday (11 May). Shinawatra served part of an eight-month sentence that capped years of legal battles, political turmoil and controversy surrounding his return from exile.
Australia confirmed it will repatriate citizens from the MV Hondius cruise ship hit by a deadly hantavirus outbreak, with quarantine on arrival. Spain, France are evacuating nationals as three deaths are confirmed. In the U.S., two passengers have been isolated after testing positive for the virus.
China’s leading chipmakers are funnelling unprecedented sums into research and development as Beijing accelerates efforts to reduce reliance on foreign technology amid intensifying U.S. export restrictions.
U.S. President Donald Trump called Iran’s response to Washington’s latest peace proposal “totally unacceptable” amid talks over ending the war and securing shipping through the Strait of Hormuz. A cargo vessel near Qatar was hit by a projectile as Kuwait reported hostile drones in its airspace.
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A Kyrgyz–Japanese archaeological expedition has uncovered the remains of a Buddhist temple complex at the medieval settlement of Ak-Beshim, also known as Suyab, in Kyrgyzstan’s Chui Region.
Israeli Prime Minister Benjamin Netanyahu said Israel aims to eventually end its reliance on U.S. financial military support within the next decade. The decision signals a long-term shift in the country’s defence policy as it seeks to deepen ties with Gulf states.
Thaksin Shinawatra, Thailand’s billionaire former prime minister, has been released on parole from prison on Monday (11 May). Shinawatra served part of an eight-month sentence that capped years of legal battles, political turmoil and controversy surrounding his return from exile.
Australia confirmed it will repatriate citizens from the MV Hondius cruise ship hit by a deadly hantavirus outbreak, with quarantine on arrival. Spain, France are evacuating nationals as three deaths are confirmed. In the U.S., two passengers have been isolated after testing positive for the virus.
China’s leading chipmakers are funnelling unprecedented sums into research and development as Beijing accelerates efforts to reduce reliance on foreign technology amid intensifying U.S. export restrictions.
Centre-right leader Péter Magyar was sworn in as Hungary’s prime minister on Saturday, propelled into office on promises of change after years of economic stagnation and strained ties with key allies under his predecessor Viktor Orbán.
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