Trump Escalates Trade War With Canada Due To Palestine Stance

Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S. exports.

President Trump has escalated his trade war with Canada.

The U.S. leader is set to impose a 35% tariff on all Canadian goods not covered by the U.S.-Mexico-Canada trade agreement if the neighbors do not reach an agreement by Friday.

Canadian Prime Minister Mark Carney recently said that negotiations with Washington had been constructive.

However, Carney has now said that Canada will recognize Palestine as a state in September at the United Nations General Assembly.

“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 posted to Truth Social.

Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S. exports.