Former President Donald Trump has escalated his unconventional trade negotiation tactics, signaling that Canada’s recent announcement to recognize a Palestinian state will significantly complicate ongoing trade discussions with the United States.
This latest maneuver, conveyed through his social media platform, marks a notable deviation from his previously expressed ambivalence regarding other nations’ similar diplomatic decisions. Unlike his reactions to the United Kingdom and France’s stances on Palestinian statehood, Trump has singled out Canada’s move as a direct impediment to reaching a new bilateral trade agreement.
Canadian Prime Minister Mark Carney’s declaration that Canada intends to formally recognize a Palestinian state by September has been seized upon by Trump as a new form of leverage. This development occurs amidst a broader international reevaluation of policies concerning Israel and Gaza, adding a complex geopolitical layer to the economic negotiations.
Trump has consistently applied pressure on Canada, even suggesting its integration as the 51st U.S. state. He has issued a firm deadline for a trade agreement, threatening a substantial 35% tariff on Canadian goods should a deal not be finalized by the impending Friday cut-off, aligning with broader tariff threats against numerous countries.
His current position stands in stark contrast to earlier statements where he indicated no concern over British Prime Minister Keir Starmer’s potential recognition of Palestinian statehood, or French President Emmanuel Macron’s similar action, which he dismissed as inconsequential. This selective targeting underscores the personalized and often unpredictable nature of his trade policy.
Despite initially claiming neutrality on the Palestinian state issue, Trump later linked recognition to rewarding Hamas, following the organization’s October 7, 2023, attack on Israel. This connection provides an additional layer to his rationale for opposing Canada’s diplomatic shift, framing it within the broader context of Middle East conflict.
The deployment of this new ‘cudgel’ against Canada mirrors a similar strategy recently employed against Brazil. Trump had previously threatened steep tariffs on Brazil after its former president, Jair Bolsonaro – a political ally facing criminal charges – was indicted, illustrating a pattern of leveraging trade policy for unrelated political grievances.
The addition of Canada’s symbolic announcement on Palestinian statehood to his list of trade war justifications further complicates the narrative surrounding his economic policies. Trump has cited a diverse and often unrelated array of reasons for his trade conflicts, from human trafficking and fentanyl flow to balancing the budget and protecting U.S. manufacturing.
