Trump warns Canada of trade fallout over planned recognition of Palestine

US President Donald Trump has cautioned that Canada’s intention to officially recognise Palestine as a state could complicate ongoing trade negotiations between the two countries.

According to Caliber.Az, Trump issued the warning on his social media platform, Truth Social, where he stated that Canada’s support for Palestinian statehood would have a negative impact on bilateral talks over new trade arrangements with the United States.

The warning came in response to an announcement by Canadian Prime Minister Mark Carney, who declared on July 30 that Canada plans to formally recognise the State of Palestine during the upcoming 80th United Nations General Assembly session in September. The move, Carney said, reflects Canada’s unwavering commitment to a two-state solution that envisions an “independent, viable, and sovereign” Palestinian state living peacefully alongside Israel.

Carney made the announcement alongside Foreign Minister Anita Anand, reiterating Canada’s longstanding position on resolving the Israeli-Palestinian conflict through peaceful means. “Canada has long been committed to a two-state solution—an independent, viable and sovereign Palestinian state living side by side with the State of Israel in peace and security,” he said.

Canada’s stance follows similar declarations by key allies. France has already pledged to recognise Palestine at the same UN session in September, while the United Kingdom has said it will move forward with recognition if Israel does not meet specific conditions, including agreeing to a ceasefire in Gaza.

According to Carney, the Palestinian Authority’s recent promises of reform played a significant role in Canada’s decision. He noted that President Mahmoud Abbas assured him of plans to hold long-overdue elections in 2026, with Hamas barred from participating. Abbas also pledged that the future Palestinian state would not be militarised.

The announcement came a day after Carney held discussions with British Prime Minister Keir Starmer on the Gaza situation—talks he cited during the July 30 press briefing.

By Tamilla Hasanova