THE United States (US) President, Donald Trump intensified his trade war with Canada ahead of his August 1 deadline for a tariff agreement, saying it would be “very hard” to make a deal with Canada after it gave its support to Palestinian statehood.
Trump is set to impose a 35 per cent tariff on all Canadian goods not covered by the U.S.-Mexico-Canada trade agreement if the two countries do not reach an agreement by the deadline.
“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,” Trump said on his Truth Social.
Recall that Canadian Prime Minister, Mark Carney, previously said tariff negotiations with Washington had been constructive, but the talks may not conclude by the deadline.
Talks between the two countries were at an intense phase, he added, but a deal that would remove all US tariffs was unlikely.
Canada is the US’ second-largest trading partner after Mexico, and the largest buyer of US exports. It bought $349.4billion of US goods last year and exported $412.7billion to the US, according to US Census Bureau data.
It is also the top supplier of steel and aluminum to the US and faces tariffs on both metals, as well as on vehicle exports.
Last month, Carney’s government scrapped a planned digital services tax targeting US technology firms after Trump abruptly called off trade talks, saying the tax was a “blatant attack.”
He followed France and Britain by announcing on Wednesday, July 30, that his country was planning to recognise the State of Palestine at a meeting of the United Nations (UN) in September.
Carney’s stance was ostensibly due to the reality on the ground, including starvation in Gaza, noting: “Canada condemns the fact that the Israeli government has allowed a catastrophe to unfold in Gaza.”
Israel and its closest ally, the US, both rejected Carney’s comments.
Meanwhile, Trump’s Special Envoy, Steve Witkoff, was expected to arrive in Israel on Thursday, July 31, in a bid to salvage Gaza ceasefire talks and tackle a humanitarian crisis in the Palestinian enclave, where a global hunger monitor has warned that famine was unfolding.
Indirect ceasefire talks between Israel and Palestinian militant group, Hamas, in Doha, ended in deadlock last week, with both sides trading blame for the impasse and gaps remaining over issues, including the extent of Israeli forces’ withdrawal.
Witkoff, who will meet Israeli Prime Minister, Benjamin Netanyahu, arrives as Israel faces mounting international pressure over Gaza, and threats to recognise a Palestinian state.
Israel on Wednesday sent a response to Hamas’ latest amendments to a US proposal that would see a 60-day truce and release of hostages in exchange for Palestinian prisoners, a source familiar with the details told Reuters.
There was no immediate comment from Hamas.
Facing mounting international outrage over images of starving children, Israel said on Sunday,July 27, it would halt military operations for 10 hours a day in parts of Gaza and designate secure routes for convoys delivering food and medicine.
In continuation of the search for peaceful resolution of the conflict, the UN Office for the Coordination of Humanitarian Affairs said on Wednesday that the UN and its partners had been able to bring more food into Gaza in the first two days of pauses, but the volume was “still far from enough.”
Even with more aid running through Gaza, residents face peril from Israeli forces and Palestinian looters when trying to reach the supplies.
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