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Trump’s Explosive Threat to Canada: No Trade Deal if You Back Palestine

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President Donald Trump issued a stark warning to Canada late Wednesday, threatening trade repercussions if it proceeds with recognizing Palestinian statehood at the United Nations General Assembly in September.

"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!!!" Trump wrote in a post on Truth Social.

The warning followed Canadian Prime Minister Mark Carney’s announcement Wednesday that Canada would join France and the United Kingdom in recognizing a Palestinian state, citing the escalating humanitarian crisis in Gaza, where starvation and deteriorating conditions have been worsened by Israel’s military campaign and restrictions on aid.

The three nations would join 147 other U.N. member states in recognizing Palestinian statehood, a move the Trump administration argues incentivizes Hamas to prolong its war with Israel and delays the release of 50 Israeli hostages, 20 of whom are believed to be alive.

White House Press Secretary Karoline Leavitt addressed reporters Thursday, stating, "The president expressed his displeasure and his disagreement with the leaders of France, the United Kingdom and Canada. He feels as though that’s rewarding Hamas at a time where Hamas is the true impediment to a ceasefire and to the release of all of the hostages."

The administration’s criticism intensified Thursday, with Secretary of State Marco Rubio dismissing the allies’ plans as "irrelevant" and their approach as "clumsy."

In a Fox News Radio interview, Rubio said, "The U.K. is like, well, ‘if Israel doesn’t agree to a ceasefire by September, we’re going to recognize a Palestinian state.’ So if I’m Hamas, I say, ‘you know what, let’s not allow there to be a ceasefire.’ If Hamas refuses to agree to a ceasefire, it guarantees a Palestinian state will be recognized by all these countries in September."

The U.K. has conditioned its recognition on Israel failing to improve conditions in Gaza, while Canada and France have signaled broader support for a two-state solution.

Carney, in a post on X, stated, "Canada has long been committed to a two-state solution, an independent, viable, and sovereign Palestinian state living side by side with the State of Israel in peace and security."

Critics, including the Trump administration and families of Israeli hostages, argue that such moves legitimize Hamas’s actions following its October 7, 2023, attack on Israel.

The Hostages and Missing Families Forum, representing most families of the 50 captives, condemned the allies’ plans in a statement: "Recognition of a Palestinian state while Hamas holds 50 hostages isn’t just a step away from peace, it is a blatant violation of international law and a dangerous moral and political violation that bestows legitimacy to horrifying war crimes. The international community—if it wants peace—must join the efforts of the US and demand, before all else, the release of the hostages and then the end of the fighting."

The State Department escalated its response Thursday, imposing sanctions on Palestinian Authority officials and members of the Palestine Liberation Organization.

The move followed a relatively muted initial reaction from Trump, who on Tuesday told reporters he had “no view” on the U.K.’s announcement.

By Wednesday, however, the administration’s stance hardened, particularly as Canada and the U.S. face a critical August 1 deadline in ongoing trade negotiations, which Carney described as “intense.”

Rubio acknowledged the global backlash against Israel’s actions in Gaza, noting, “Hamas is sitting there saying, ‘We’re winning the P.R war, we’ve got all these countries lining up on our side of this argument. We’ve got leverage now. We shouldn’t agree to anything. We should keep this thing going.’”

The administration remains steadfast in its support for Israel.

Special Envoy Steve Witkoff and U.S. Ambassador to Israel Mike Huckabee are scheduled to visit Gaza on Friday to assess aid distribution and meet with residents, Leavitt confirmed.

Trump, while acknowledging Gaza’s humanitarian disaster on Monday, continues to align closely with Israeli Prime Minister Benjamin Netanyahu, even as concerns over famine grow among both Democrats and some MAGA supporters.

President Trump is drawing a line in the sand, warning allies that recognizing Palestinian statehood could fracture trade ties and embolden Hamas.

Alicia Powe

Alicia is an investigative journalist and breaking news reporter with RiftTV. Alicia's work is featured on outlets including The Gateway Pundit, Project Veritas, Townhall and Media Research Center.

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