Trade Tensions Rise as Canada Supports Palestinian Statehood

The U.S.-Canada trade relationship faces challenges as Canada endorses Palestinian statehood, prompting U.S. President Donald Trump to question the feasibility of a trade deal. Canadian Prime Minister Mark Carney's actions align with France and Britain, potentially affecting ongoing tariff negotiations with the U.S. before an impending deadline.


Devdiscourse News Desk | Updated: 31-07-2025 10:25 IST | Created: 31-07-2025 10:25 IST
Trade Tensions Rise as Canada Supports Palestinian Statehood
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The prospect of a U.S.-Canada trade deal has been cast into doubt as Canada declared support for Palestinian statehood. This move has led U.S. President Donald Trump to express concerns over possible difficulties in reaching an agreement.

Canadian Prime Minister Mark Carney's office has remained silent following the announcement. The decision aligns Canada with France and Britain, sparking tension with Israel and the United States.

The two North American neighbors are racing against time to finalize a trade agreement by August 1, a date by which Trump threatens to impose a 35% tariff on Canadian goods not covered by existing accords. Carney acknowledged progress, though a timely resolution remains uncertain.

(With inputs from agencies.)

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