From the Liveblog of
Thursday, July 31, 2025
Trump hints at blowing up Canada trade talks over Palestine recognition
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US President Donald Trump criticizes Canada for announcing it will recognize a Palestinian state, linking the issue to efforts to negotiate a trade agreement with America’s northern neighbor for the first time.
“Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!” Trump writes in one of several Truth Social posts on trade that he has fired off since midnight.
The post appears to be a departure from previous remarks he has made on the decisions by the UK and France to recognize a Palestinian state, in which he noted that he disagreed with the moves, which would “reward” Hamas, but would not seek to influence their decisions.
It also seems to be the first time that Trump has signaled at retribution for countries who take the step, wielding one of his most powerful potential levers in in international relations.
The US is currently negotiating trade deals with a host of countries seeking to avoid steep tariffs on entry to the US market. Deals with the EU and Britain had been announced prior to their Palestine announcements.
Canada is one of the US’s largest trading partners and reaching a deal is seen as a top priority in Ottawa.
The Times of Israel Community.