FPJ News Service Mumbai

U.S. President Donald Trump has threatened to slap a 35% tariff on Canadian goods not covered under the US-Mexico-Canada Agreement, escalating trade tensions just a day ahead of his self-imposed August 1 deadline.

Posting on Truth Social, Trump expressed outrage at Canada’s recent declaration supporting Palestinian statehood, saying, “That will make it very hard for us to make a Trade Deal with them. Oh, Canada!!!”

The warning marks a sharp shift in tone, just days after Canadian Prime Minister Mark Carney described talks with Washington as “constructive.” However, Carney also admitted that a deal might not be finalized in time. With Canada being the second-largest trading partner of the U.S. and the top buyer of American exports, Trump’s move could significantly impact cross-border commerce.

Canada’s announcement aligns it with European allies France and Britain, both of whom recently indicated their intention to recognize Palestine at the upcoming UN assembly. In his remarks, Carney cited “unfolding starvation in Gaza” and condemned Israeli inaction.

Israel and the United States swiftly rejected Carney’s stance, deepening the diplomatic rift. With economic and geopolitical fault lines now intersecting, both nations face an uncertain path ahead as politics and trade collide once more.