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.
Israeli Prime Minister Benjamin Netanyahu met with US President Donald Trump’s Special Envoy for the Middle East, Steve Witkoff, in a meeting held a...
U.S. President Donald Trump has raised tariffs on Canadian goods to 35% and on Indian goods to 25%, part of a wider set of duties on dozens of countri...
The United States has imposed sanctions on officials from the Palestinian Authority (PA) and members of the Palestine Liberation Organisation (PLO), a...
Recognition of a Palestinian state should come at the end of talks on a two-state solution but Berlin would respond to any unilateral actions, after c...
President Donald Trump has ordered sweeping new tariff increases on imports from more than 80 countries, citing continued trade imbalances and nationa...
Israeli Prime Minister Benjamin Netanyahu met with US President Donald Trump’s Special Envoy for the Middle East, Steve Witkoff, in a meeting held at Netanyahu’s office. Details of their discussions were not disclosed.
U.S. President Donald Trump has raised tariffs on Canadian goods to 35% and on Indian goods to 25%, part of a wider set of duties on dozens of countries taking effect on Friday.
The United States has imposed sanctions on officials from the Palestinian Authority (PA) and members of the Palestine Liberation Organisation (PLO), accusing them of undermining peace efforts with Israel.
Recognition of a Palestinian state should come at the end of talks on a two-state solution but Berlin would respond to any unilateral actions, after citing "annexation threats" by some Israeli ministers, according to Germany's foreign minister on Thursday.
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Israeli Prime Minister Benjamin Netanyahu met with US President Donald Trump’s Special Envoy for the Middle East, Steve Witkoff, in a meeting held at Netanyahu’s office. Details of their discussions were not disclosed.
U.S. President Donald Trump has raised tariffs on Canadian goods to 35% and on Indian goods to 25%, part of a wider set of duties on dozens of countries taking effect on Friday.
The United States has imposed sanctions on officials from the Palestinian Authority (PA) and members of the Palestine Liberation Organisation (PLO), accusing them of undermining peace efforts with Israel.
Recognition of a Palestinian state should come at the end of talks on a two-state solution but Berlin would respond to any unilateral actions, after citing "annexation threats" by some Israeli ministers, according to Germany's foreign minister on Thursday.
President Donald Trump has ordered sweeping new tariff increases on imports from more than 80 countries, citing continued trade imbalances and national security concerns, intensifying Washington’s ongoing trade policy reset on 31 July.
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