US Threatens Tariffs Over Canada Palestine Recognition

President Donald Trump has threatened to suspend trade negotiations and impose tariffs of up to 35% on Canadian goods if Canada proceeds with its plan to recognize Palestinian statehood at the United Nations General Assembly in September 2025. The Canadian move is contingent on Palestinian Authority reforms, democratic elections excluding Hamas, and hostage releases, aligning with similar announcements from France and the UK. Trump set an August 1 deadline for concluding trade talks, after which tariffs would take effect, raising fears of economic fallout since over 75% of Canadian exports go to the US. Canadian officials have indicated that talks are unlikely to conclude before the deadline. Israel and some US officials criticized the recognition, while Prime Minister Carney cited humanitarian concerns in Gaza as motivating the decision. The threat comes amid wider US tariff actions, contributing to global economic uncertainty.