Trump Says Canada’s Backing of Palestinian Statehood Threatens US Trade Deal

Failure to reach deal by Aug. 1 could trigger 35 percent tariffs on Canadian goods.
Trump Says Canada’s Backing of Palestinian Statehood Threatens US Trade Deal
President Donald Trump meets Canadian Prime Minister Mark Carney in the Oval Office on May 6, 2025. AP Photo/Evan Vucci
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U.S. President Donald Trump said on July 31 it would be “very hard” to reach a trade agreement with Canada after Prime Minister Mark Carney announced plans to recognize a Palestinian state.

Trump’s remarks come one day ahead of the Aug. 1 deadline for a new tariff agreement between the two nations. Canada is the second-largest U.S. trading partner, buying $349.4 billion of U.S. goods in 2024 and exporting $412.7 billion to the United States.
Evgenia Filimianova
Evgenia Filimianova
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Evgenia Filimianova is a UK-based journalist covering a wide range of international stories, with a particular interest in foreign policy, economy, and UK politics.