Trump Threatens Canada Over Palestine: Trade Agreement at Risk Due to Mark Carney’s Recognition of Palestinian State

Web Editor

August 1, 2025

a man in a suit and tie standing in front of a microphone in a room with wooden walls and a black sc

Background on Key Figures and Context

Donald Trump: The 45th President of the United States, known for his controversial policies and strong stance on international issues.

Mark Carney: The current Governor of the Bank of England and former Prime Minister of Canada, recognized for his commitment to social issues and international diplomacy.

Trump’s Threat Against Canada

July 31, 2022: President Trump expressed his frustration on social media regarding Canada’s decision to support the creation of a Palestinian state.

Carney defended Canada’s decision to recognize Palestine as a state, citing the “unbearable suffering” caused by Israel’s actions, including blocking food distribution in Gaza, violence from Israeli settlers in the West Bank, and plans to annex Palestinian territory.

Trade Negotiations and Tensions

Canada and the United States have been negotiating a trade agreement, with Trump threatening to impose a 35% tariff on Canadian products not included in the US-Mexico-Canada Agreement (USMCA).

Carney acknowledged that trade negotiations with Trump have been constructive but expressed uncertainty about reaching a conclusion before the deadline.

White House spokesperson Karoline Leavitt reiterated Trump’s displeasure with Canada, France, the United Kingdom, and other countries for recognizing a Palestinian state.

US Sanctions on Palestinian Leaders

The US Department of State announced sanctions against Palestinian Authority and the Popular Front for the Liberation of Palestine (PFLP) leaders, accusing them of attempting to “internationalize the conflict with Israel.”

Sweden Calls for Sanctions Against Israel

July 2022: Swedish Prime Minister Ulf Kristersson demanded that the European Union freeze the commercial part of its association agreement with Israel, citing Israel’s failure to meet its obligations in the Gaza Strip, which faces a humanitarian crisis.

“The situation in Gaza is absolutely appalling… Sweden demands that the European Union suspend the commercial part of the association agreement as soon as possible. Economic pressure must be increased on Israel.”
— Ulf Kristersson, Prime Minister of Sweden

Key Questions and Answers

  • Who is Donald Trump? The 45th President of the United States, known for his controversial policies and strong stance on international issues.
  • Who is Mark Carney? The current Governor of the Bank of England and former Prime Minister of Canada, recognized for his commitment to social issues and international diplomacy.
  • What is the trade dispute between the US and Canada about? The disagreement stems from Trump’s threat to impose a 35% tariff on Canadian products not included in the USMCA, following Canada’s decision to support Palestinian statehood.
  • What sanctions did the US impose on Palestinian leaders? The US placed sanctions on Palestinian Authority and PFLP leaders, accusing them of attempting to internationalize the conflict with Israel.
  • What demands has Sweden made regarding its association agreement with Israel? Swedish Prime Minister Ulf Kristersson called for freezing the commercial part of the EU’s association agreement with Israel due to its failure to meet obligations in Gaza, which is experiencing a humanitarian crisis.