Trump Warns Tariffs If Canada Recognizes Palestine Amid Trade Talks

President Donald Trump has threatened to impose a 35% tariff on Canadian goods if the United States and Canada do not reach a trade agreement by the August 1 deadline, citing Canada's recent announcement to recognize a Palestinian state as a major obstacle to negotiations. Trump expressed frustration on social media, suggesting that Canada's move in support of Palestinian statehood complicates trade talks, despite previously showing ambivalence toward similar positions taken by the UK and France. Trade discussions have been ongoing, with Canadian officials in Washington engaging in last-minute negotiations, but progress remains limited, particularly over issues like access to Canada's supply-managed dairy sector. While Trump indicated openness to further discussions and possible talks with Canadian Prime Minister Mark Carney, his administration has also criticized Canada's defense spending and trade practices, reinforcing the threat of tariffs if no deal is reached. The deadline has prompted concern among Canadian businesses and policymakers, who fear the economic and diplomatic repercussions of a trade conflict. This dispute reflects broader tensions in U.S.-Canada relations under Trump's presidency, combining trade policy with geopolitical considerations related to the Israeli-Palestinian conflict.