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. Oh’ Canada!!!” he wrote on Truth Social.

Trump’s comments come hours ahead of the August 1 deadline for Canada to reach a trade agreement or face a 35% tariff on some Canadian imports.

It’s only the latest escalation in a dramatic on-and-off trade war with the US’s closest trading partner.

Canada’s decision on Palestinian statehood also comes at a time of renewed international attention on the war in Gaza, especially the ongoing hunger crisis caused by Israel’s blockade of humanitarian aid.“Canada will always steadfastly support Israel’s existence as an independent state in the Middle East, living in peace and security,” Carney said. “Any path to lasting peace for Israel also requires a viable and stable Palestinian state and one that recognizes Israel’s inalienable right to security.”

Carney’s announcement came after the Canadian leader spoke to British Prime Minister Keir Starmer about Gaza on Tuesday, a fact Carney mentioned on Wednesday.

During their call, the two politicians discussed “the rapidly deteriorating humanitarian disaster in Gaza, as well as the United Kingdom’s statement on the recognition of a Palestinian state,” according to a readout from Carney’s office.

Israel’s Foreign Ministry quickly “rejected” Canada’s decision in a post on X, calling it a “reward to Hamas.“The change in the position of the Canadian government at this time is a reward for Hamas and harms the efforts to achieve a ceasefire in Gaza and a framework for the release of the hostages,” the Ministry stated.

“Let us be clear: Israel will not bow to the distorted campaign of international pressure against it,” Israel’s Ambassador to Canada Iddo Moed said in an X post from the embassy. “We will not sacrifice our very existence by permitting the imposition of a jihadist state on our ancestral homeland that seeks our annihilation.”

Both Israel and the US previously criticized the move by France and the UK, saying it rewards Hamas. Last month, Canada joined the UK, Norway, New Zealand and Australia in sanctioning two far-right ministers of Israeli Prime Minister Benjamin Netanyahu’s government.

“We are steadfastly committed to the two-state solution which is the only way to guarantee security and dignity for Israelis and Palestinians and ensure long term stability in the region, but it is imperiled by extremist settler violence and settlement expansion,” a joint statement from the five countries said.