Top News

Trump makes trade threat to Canada after Palestine move
Deutsche Welle | July 31, 2025 10:39 PM CST

Trump has said that Canada's move to recognize a Palestinian state could put a US-Canada trade agreement in jeopardy. DW has the latest. US President Trump says it is "very hard" to make a trade deal with Canada after Ottawa said it would back Palestinian statehood. US special envoy Steve Witkoff will travel to Israel to discuss the hunger crisis in Gaza. Here are the headlines from Gaza, Israel, and the wider Middle East on Thursday, July 31. US special envoy Steve Witkoff to visit Israel: reports US special envoy Steve Witkoff is scheduled to leave for Israel as the US looks to address the worsening starvation crisis in Gaza, according to US media reports. The trip comes in the midst of stalled truce talks between Israel and Palestine's Hamas militant group. Witkoff said last week that the US had withdrawn its negotiating delegation from Qatar over what he called a lack of willingness by Hamas to reach a ceasefire. Israel has also pulled its team from the talks. The US, Qatar and Egypt are mediating between Israel and Hamas, who do not talk directly. Trump says 'very hard' to make trade deal with Canada after decision over Palestinian statehood US President Donald Trump has threatened Canada with repercussions for negotiations on a trade deal after it announced its plans to recognize Palestinian statehood. "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 Truth Social, his social media platform. Trump's statement is set to intensify a trade war between US and Canada, just a day ahead of the August 1 deadline to lock a tariff agreement. If the two countries fail to strike an agreement by the deadline, Canada faces a 35% tariff on its goods which are not covered under the US-Mexico-Canada trade pact, On Wednesday, Canada's Prime Minister Mark Carney announced the possibility of recognizing a Palestinian state at the upcoming United Nations General Assembly, scheduled for September. The UK and France have also said over the last week that they would support statehood for Palestine. Welcome to our coverage Canada has joined Britain and France to say that it "intends" to recognize a Palestinian state in September. However, Canada's decision has resulted in threats from US President Donald Trump as a deadline for a trade agreement between the two countries nears. Trump has said that Canada's support for Palestinian statehood would make it difficult for the US to zero-in on an agreement with Canada. Canada will be hit with a 35% tariff on its exports to the US if a deal cannot be reached, the president said. Also, US special envoy Steve Witkoff will reportedly travel to Israel on Thursday in light of the deteriorating humanitarian situation in the Gaza Strip. Stay up-to-date with this blog as we bring you the latest reports, analyses, and explainers on the situation in Gaza.



READ NEXT
Cancel OK