Trump tells Canada recognising Palestine could scupper trade deal

Canada joins France and Britain in preparing to recognise Palestinian state within weeks

US President Donald Trump on Thursday said it would be “very hard” to strike a trade deal with Canada after it announced it was ready to recognise the state of Palestine.

Canada on Wednesday joined a growing list of western countries, led by France, that intend to recognise Palestinian statehood at the UN General Assembly in September – a step opposed by the US and Israel.

“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,” Mr Trump wrote on social media.

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Canada's Prime Minister Mark Carney said recognition was conditional on several factors, including that Hamas could play no role in a Palestinian state, that it should be demilitarised and that the Palestinian Authority hold elections by 2026.

“Canada intends to recognise the State of Palestine at the 80th session of the United Nations General Assembly in September 2025,” Mr Carney said. He described the suffering in Gaza as “intolerable”.

The decision comes amid a groundswell of support for a Palestinian state among Israel's allies. The humanitarian catastrophe in Gaza, where more than 60,100 Palestinians have been killed and mass starvation is worsening the crisis, has forced countries to change their approach to Israel's war on the enclave.

Mr Carney said Canada had long supported a two-state solution and that the deteriorating situation both in Gaza and the occupied West Bank meant time is of the essence.

“Canada has had a long-standing, principled stand … a belief in a two-state solution, the inalienable rights of both peoples, and the fact that peace and security could only be achieved through it,” Mr Carney said. “That prospect, that possibility of a two-state solution, is being eroded before our eyes.”

He added that he had spoken to leaders in the UK and France, both expected to recognise Palestine at the UN General Assembly. “It does matter that others are moving [on the issue],” Mr Carney said.

“We are working ourselves with others, to preserve the possibility of a two-state solution, to not allow the facts on the ground, the deaths on the ground, the settlements on the ground, the expropriations on the ground, to get to such an extent that this is not possible,” he added.

Israel criticised Canada over its plan, claiming it was part of a “distorted campaign of international pressure”.

“Recognising a Palestinian state in the absence of accountable government, functioning institutions, or benevolent leadership, rewards and legitimises the monstrous barbarity of Hamas on October 7, 2023,” the Israeli embassy in Ottawa said in a statement.

The Israeli Foreign Ministry said the “change in the position of the Canadian government at this time is a reward for Hamas and harms the efforts to achieve a ceasefire in Gaza and a framework for the release of the hostages”.

Mr Carney was praised by Palestinian Authority President Mahmoud Abbas, who called the move “historic” during a phone call with the Canadian leader. Mr Abbas said he “appreciated Canada's historic position in recognising the State of Palestine, which will enhance peace, stability and security in the region”, the Wafa news agency reported.

Malta has also announced it will recognise Palestine in September. Christopher Cutajar, Permanent Secretary of Malta’s Foreign Ministry, made the announcement at the UN’s meeting on a two-state solution.

Mr Cutajar said the country had long supported self-determination for the Palestinian people and “as responsible actors, we have a duty to work to translate the concept of a two-state solution from theory into practice”.

“It is for this reason that the government of Malta has taken the principled decision to formally recognise the State of Palestine at the upcoming UN General Assembly in September,” he added.

Malta’s Prime Minister Robert Abela also announced the decision on Facebook, saying it is part of the nation’s efforts “for a lasting peace in the Middle East”.