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Australia

Trump ramps up trade war with Canada over Palestine

July 31, 2025 20:48 | News

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

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 announced that the state supports Palestine. This will make it very difficult for us to make a trade agreement with them,” Trump 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 Trump’s sudden trade talks that the tax was a “open attack”.

Prime Minister Mark Carney said Canada plans to recognize the Palestinian state in the UN. (AP Photo)

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.


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