Canada plans to recognize the state of Palestine next September. The country's Prime Minister Mark Carney confirmed this. US President Donald Trump reacted strongly after his announcement on Wednesday (July 30). He said that the decision would threaten the US-Canada trade agreement and as a result, it would become "very difficult" to make a new trade deal with Canada in the future.

Trump wrote in a tweet, "Wow!... This will make it very difficult for us to make a trade deal with them (Canada)." According to analysts, Trump's threat is not only political, but it could also affect the long-standing economic relations between North America.

Earlier, Prime Minister Mark Carney said at a press conference that Canada will officially recognize Palestine as an independent state at the upcoming UN General Assembly. He said that this major change in Canadian foreign policy is due to the continued expansion of Israeli settlements in the West Bank, the humanitarian disaster in the Gaza Strip and events such as the Hamas attack on October 7, 2023.

Carney also said that the recognition of Palestine will depend on two conditions. First, the Palestinian Authority must bring significant reforms to the governance system. Second, the territory must be completely demilitarized. He said that he had discussed this announcement with Palestinian President Mahmoud Abbas.

After the incident, analysts say that in the light of Trump's threat, it is now to be seen whether Canada will stick to its decision. Because the matter could have a major impact not only on the geopolitics of the Middle East, but also on North American trade and diplomatic relations.