Trump says Canada backing Palestinian statehood hurts its chances at a trade deal with US

President Trump on Thursday said that Canada backing Palestinian statehood hurts its chances at reaching a trade deal with the U.S.

"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. Oh’ Canada!!!" Trump posted on Truth Social.

Canadian Prime Minister Mark Carney on Wednesday announced his country will formally recognize Palestine as a free state in September at the United Nation's General Assembly. His action follows those announced by France and the United Kingdom last week, which will also recognize Palestine as a state at the General Assembly in New York. The U.S. and Israel have condemned the recent actions.

Canada has long supported recognizing Palestine as its own state next to Israel, but previously pushed for the recognition to come as part of a two-state solution that ends the war in Gaza, which Carney indicated seems less likely now.

"This intention is predicated on the Palestinian Authority’s commitment to much-needed reforms, including the commitments by Palestinian Authority President Abbas to fundamentally reform its governance, to hold general elections in 2026 in which Hamas can play no part, and to demilitarize the Palestinian state," Carney said.

Carney added that Hamas must also release all remaining hostages from its Oct. 7, 2023, attack on Israel. 

Palestine has been recognized as a state by 147 countries, but Canada, France, and the United Kingdom will be the first members of the Group of Seven to do so. Germany, Italy, Japan, and the United States are the other four members.