Trump says Canada's Palestine position may make it hard to do trade.

Donald Trump has issued a warning to Canada following its announcement that it intends to recognize a Palestinian state, suggesting that finalizing a U.S. trade agreement with the country would now be “very hard.”

Canadian Prime Minister Mark Carney said Wednesday that Canada would join France, the UK, and other allies in formally recognizing Palestinian statehood at the UN General Assembly in September—provided the Palestinian Authority agrees to key conditions, including holding elections without Hamas participation and committing to demilitarization.

Portugal announced on Thursday that it was also weighing recognition, while Germany maintained that such a move should come only after the conclusion of negotiations for a two-state solution.

Earlier in the week, Trump had seemed to tacitly support UK Prime Minister Keir Starmer’s own recognition announcement. But as more countries move in that direction, Trump has doubled down on support for Israel’s stance, arguing that such recognition “rewards Hamas.”

“The level of human suffering in Gaza is intolerable,” Carney said in his remarks. He noted that Palestinian Authority leader Mahmoud Abbas had given assurances the proposed conditions could be met, but acknowledged “much has to happen before a democratic viable state is established.”

Carney emphasized the urgency of global action, saying: “The deepening suffering of civilians leaves no room for delaying coordinated international action to support peace, security, and the dignity of human life.”

Meanwhile, Israel has faced accusations of blocking humanitarian aid to Gaza, where dozens have reportedly starved to death in recent days. Shocking images of severely malnourished children have circulated worldwide.

Trump, reacting to Carney’s announcement, posted on social media: “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.”

He is expected to impose a 35% tariff on all Canadian imports not covered under the existing US-Mexico-Canada Agreement (USMCA) if no resolution is reached by the Friday deadline. Carney had already acknowledged that avoiding tariffs entirely in any new trade deal with the U.S. would be unlikely, even though Canada remains the top purchaser of American exports.

Trump echoed Israel’s argument that recognizing Palestine equates to “rewarding terrorists,” a sentiment echoed by Israel’s ambassador to Canada, Iddo Moed, who made similar remarks on CBC, the country’s public broadcaster.