Trump blasts Canada over recognizing Palestinian statehood: 'That will make it very hard for us to make a trade deal with them'

Tensions between the United States and Canada kicked off once again on Thursday after US President Donald Trump said that Canada's plan to recognize a Palestinian state could jeopardize ongoing trade negotiations between the two countries.

Posting to Truth Social shortly after midnight, Trump slammed Ottawa’s move, warning it could impact the future of bilateral trade. "Wow! Canada has just announced that it is backing statehood for Palestine," Trump wrote. "That will make it very hard for us to make a Trade Deal with them. Oh' Canada!!!"

Canadian Prime Minister Mark Carney confirmed Wednesday that trade talks with the United States remain unfinished, just days ahead of the Aug. 1 deadline Trump imposed. "It is possible that [negotiations] may not conclude by the first of August," Carney said during a news conference. "But we'll see with the teams there. We're working hard."

On Monday, Carney characterized the talks as being in an "intense phase," while also making clear that Canada will not agree to a deal at any cost. Last week, he stated his objective was "not to reach a deal whatever it costs."

The delay comes as Trump continues to hang new tariffs over Canada's head. The US has imposed a 25 percent tariff on several Canadian exports, citing fentanyl trafficking as a national security threat. Trump has said that if no agreement is reached, those tariffs could rise to 35 percent.

On Wednesday, he also announced a 50 percent tariff on copper goods like pipes and wiring, effective Friday. The White House said those new measures would focus on semi-finished products and copper-heavy components.

Trump told reporters, "I think Canada could be one where there's just a tariff, not really a negotiation."

Canadian officials appear unconvinced that a last-minute breakthrough is possible. Kirsten Hillman, Canada’s ambassador to the US, and Dominic LeBlanc, minister responsible for Canada-US trade, both signaled that a delay beyond the Aug. 1 deadline remains likely. "It's important for us to recognize that there is a time when the deal is the right deal, and it's important for us to be in a position to continue negotiating until we get to that point," Hillman said last week.

Carney noted Wednesday that certain industries remain key points of contention. "The president has been very clear … that there are certain sectors that are strategic, in their judgment, to the United States' economy: aluminum, steel, automobiles, pharmaceuticals, semiconductors and lumber," he said.