Trump ramps up trade war with Canada over Palestine

US President Donald Trump said that after supporting the Palestinian state, it would be a “very difficult” to make an agreement with Canada, and intensified the trade war with Canada the day before August 1st.

If Trump does not reach an agreement until the last date, the two countries will bring a 35 percent tariff to all Canadian goods, which are not covered by the US-Mexican-Canadian trade agreement.

“Wow! Canada will make it very difficult for us to make a trade agreement for Palestine.” He said.

Canadian Prime Minister Mark Carney said that tariff negotiations with Washington were constructive before, but the talks may not be concluded until the deadline.

Negotiations between the two countries were at an intensive stage, but an agreement was unlikely to remove all US tariffs.

Canada is the second largest US trade partner and the largest buyer of US exports after Mexico. According to the US census bureau data, the US purchased $ 349.4 billion ($ 542.8 billion) last year and exported $ 412.7 billion to the United States.

Canada is also the best steel and aluminum supplier for the United States and confronts tariffs both in metals and vehicle exports.

In June, the Carney government seized a planned digital service tax targeting US technology companies, saying that the tax was a “open attack” after Trump suddenly called for trade talks.

Carney said on Wednesday that France and England followed and said that his country was planning to recognize the Palestinian province at the United Nations meeting in September.

While explaining the decision, Carney talked about the reality on the ground, including hunger in Gaza.

“Canada condemns the fact that the Israeli government allows a disaster in Gaza to emerge.” He said.

Israel and Israel’s closest ally, the US rejected Carney’s comments.

Carney’s office did not respond to the request for a comment on Trump’s post.