(VOVWORLD) -“Canada has just announced that it is backing statehood for Palestine,” US President Donald Trump said in his Truth Social post on Thursday. “That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!,” he added.
 Canadian Prime Minister Mark Carney at a press conference in Ottawa on July 30 about the plan to recognize the State of Palestine. Photo: Reuters
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Canadian Prime Minister Mark Carney announced on Wednesday his plan to recognize the State of Palestine at the 80th session of the United Nations General Assembly in September, making Canada the third country, after France and the UK, to deliver a similar statement lately.
August 1 is the deadline for Canada to finalize trade talks with the United States. Experts say the statements made by the leaders of the United States and Canada will make the negotiations, which are already in an intense phase, even more difficult for Canada.
If no deal is reached, Washington warns of a 35% tariffs on Canadian goods not covered by the Canada-United States-Mexico Agreement (CUSMA). The 35% rate will be applied to Canadian exports that are currently subject to a 25% tax.
Prime Minister Carney has said he prioritizes “a strong, future-focused deal over a rushed one.” Canada's top trade negotiators underestimated the possibility of reaching a trade deal with the US before the August 1 deadline.