Trump makes trade threat to Canada after Palestine move

07/31/2025July 31, 2025

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Canada has joined Britain and France to say that it "intends" to recognize a Palestinian state in September. 

However, Canada's decision has resulted in threats from US President Donald Trump as a deadline for a trade agreement between the two countries nears.

Trump has said that Canada's support for Palestinian statehood would make it difficult for the US to zero-in on an agreement with Canada. 

Canada will be hit with a 35% tariff on its exports to the US if a deal cannot be reached, the president said.

Also, US special envoy Steve Witkoff will reportedly travel to Israel on Thursday in light of the deteriorating humanitarian situation in the Gaza Strip. 

Stay up-to-date with this blog as we bring you the latest reports, analyses, and explainers on the situation in Gaza.