Washington, 31 July 2025 (dpa/MIA) – US President Donald Trump on Thursday said Canada's willingness to recognize a Palestinian state could jeopardize trade negotiations.

"Wow! Canada has just announced that it is backing statehood for Palestine," Trump wrote on his Truth Social platform.

"That will make it very hard for us to make a Trade Deal with them. Oh' Canada!!!"

Canadian Prime Minister Mark Carney on Wednesday said Canada would recognize the "State of Palestine" at the United Nations General Assembly in September if certain conditions are fulfilled.

Carney said in a press conference that the move is predicated on the West Bank-based Palestinian Authority, headed by Mahmoud Abbas, to "fundamentally reform its governance," hold elections by 2026 and "to demilitarize the Palestinian state."

Palestinian militant organization Hamas "must play no role in the future governance of Palestine," Carney said and "must immediately release all hostages" from the terrorist attack on October 7, 2023, which triggered the conflict in Gaza.

The US remains Canada's most important trading partner. Since taking office for a second term in January, Trump has imposed a slew of tariffs and threatened additional ones on Canada, accusing Ottawa of failing to prevent the influx of fentanyl into the US.

He suspended trade negotiations at the end of June amid anger over Canadian tax policy that affected US businesses.

While he recently became more critical of Israel's conduct in Gaza, appearing to be struck by images showing malnourished Palestinian children, Trump has said he is "not in that camp" when it comes to recognizing a Palestinian state.

In another post on Truth Social later on Thursday, the US president wrote: "The fastest way to end the Humanitarian Crises in Gaza is for Hamas to SURRENDER AND RELEASE THE HOSTAGES!!!"