U.S. President Donald Trump has issued a stark warning that trade negotiations with Canada could be halted following Ottawa's announcement to recognize Palestinian statehood. This development adds fresh tension between the two nations as they work against a rapidly approaching deadline to renew their trade agreements.

On Wednesday, Canadian Prime Minister Mark Carney declared Canada's intention to acknowledge a Palestinian state at the upcoming United Nations General Assembly in September, aligning with similar moves by France and the U.K. This decision has not sat well with President Trump, a vocal supporter of Israel, who views the recognition of Palestinian statehood as a potential endorsement of Hamas, the group responsible for the deadly attack on Israel on October 7, 2023.

Trump expressed his dismay on social media, stating, "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!!!" This post on Truth Social underscores the growing rift over foreign policy and trade between Canada and the U.S.

Negotiations have grown tense, with U.S. officials reportedly rehashing old grievances without proposing viable solutions, leading to a deadlock in discussions. The trade talks, already under pressure from a looming Friday deadline that threatens the imposition of significant U.S. tariffs, have been further complicated by international reactions to ongoing conflicts in the Middle East.

The humanitarian crisis in Gaza has intensified global scrutiny towards Israel. U.N. Secretary-General António Guterres recently highlighted the dire situation, noting Gaza is "on the brink of famine." This backdrop has partly motivated Canada, along with France and the U.K., to push for Palestinian statehood now, emphasizing that Hamas must disarm and should not participate in any future government formation.

Since returning to office, Trump has adopted an aggressive stance towards Canada, frequently mocking its political status and even jesting about annexation. He has referred to the former Canadian Prime Minister Justin Trudeau as “Governor Trudeau,” and jokingly called Canada the 51st state.

As the deadline for the trade agreement draws near, the international community watches closely. The decisions made in the coming days will not only influence the economic ties between Canada and the U.S. but could also impact the broader geopolitical stability in the region.