US President Trump intends to suspend trade negotiations with Canada due to their bid to acknowledge Palestine as a sovereign state.
In the ongoing U.S.-Canada trade saga, tensions remain high despite the USMCA agreement that keeps most trade tariff-free. On August 1, 2025, President Donald Trump increased tariffs on Canadian goods from 25% to 35%, citing Canada's insufficient cooperation in combating fentanyl and illicit drug flow across the northern border.
Canada responded to the tariff hike with disappointment but reaffirmed its commitment to the USMCA, emphasizing efforts to protect affected sectors and continue collaborative security investments. The tariff increase is part of a broader U.S. executive order addressing a declared national emergency linked to illicit drug flow.
Negotiations between the countries are ongoing, but without a finalized resolution reported as of late July or early August 2025. The U.S. has warned that failure to reach an agreement would lead to higher tariffs.
Meanwhile, in international politics, 16 countries, including France, Canada, Australia, and Malta, have urged an immediate ceasefire in Gaza, entry of humanitarian aid, and called for international recognition of the State of Palestine. Malta's Prime Minister, Robert Abela, announced Malta's intention to recognize the State of Palestine at the United Nations General Assembly in September, a decision that was made following a similar announcement by British Prime Minister Keir Starmer that the UK will be recognizing the state of Palestine.
At Al Bawaba, news and breaking news writer Sally Shakkour, the English team leader and news writer, monitors the platform's social media accounts with insights and knowledge of current trends and popular issues. With over 6 years of experience in publishing content and digital journalism, Sally excels in writing original node stories and has good knowledge of Google's SEO. Her work is published by Al Bawaba.
In a separate development, U.S. President Donald Trump signed legislation to create a safety net for U.S. veterans and prevent them from potentially losing their homes. However, no new facts about this legislation were provided in this context.
As the situation unfolds, we will continue to bring you updates on these developments. Stay tuned to Al Bawaba for the latest news.
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