Trump Threatens Tariffs Over Canada–Palestine Move

U.S. President Donald Trump has warned that Canada's decision to recognize Palestinian statehood will make reaching a trade deal between the two countries 'very hard,' threatening a 35% tariff on Canadian goods if no agreement is reached by his August 1 deadline. Canadian Prime Minister Mark Carney announced plans to formally recognize Palestine at the United Nations in September, citing humanitarian concerns in Gaza and emphasizing reforms that would exclude Hamas from future Palestinian elections. Trump argues that recognizing Palestine would 'reward' Hamas and has taken a tougher stance against Canada compared to his responses to similar moves by the UK and France. The issue has further complicated ongoing U.S.-Canada trade negotiations. Both leaders have acknowledged the urgency and complexity of the situation. The developments reflect heightened diplomatic and economic tensions linked to the Israel-Palestine conflict.