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Trump seeks to use Canada's recognition of Palestinian state as leverage in trade talks

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Trump seeks to use Canada's recognition of Palestinian state as leverage in trade talks
News

News

Trump seeks to use Canada's recognition of Palestinian state as leverage in trade talks

2025-07-31 23:18 Last Updated At:23:20

WASHINGTON (AP) — Canada's announcement it will recognize a Palestinian state “will make it very hard” for the United States to reach a trade agreement with its northern neighbor, President Donald Trump said.

Trump's threat, posted early Thursday on his social media platform, is the latest way he has sought to use his trade war to coerce countries on unrelated issues. And when other allies had raised the matter of Palestinian statehood, the Republican president had been ambivalent.

He said this week that he did not mind that British Prime Minister Keir Starmer was taking the position that the United Kingdom would recognize a Palestinian state in September unless Israel agreed to a ceasefire in Gaza, allowed the United Nations to bring in aid and took other steps toward long-term peace. Last week, the Republican president said French President Emmanuel Macron's similar move was "not going to change anything.”

But Trump, who has heckled Canada for months and suggested it should become its 51st U.S. state, is now indicating that Prime Minister Mark Carney's similar recognition would become leverage before a looming deadline that the American leader set in U.S.-Canada trade talks.

“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump said in his Truth Social post. “That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!”

Trump has threatened to impose a 35% tariff on Canada if no deal is reached by Friday, when he’s said he will levy tariffs against goods from dozens of countries if they don’t reach agreements with the U.S.

A spokesperson for Carney declined comment Thursday.

Some imports from Canada are still protected by the 2020 United States-Mexico-Canada Agreement, which is up for renegotiation next year.

Carney’s announcement Wednesday comes amid a broader global shift against Israel’s policies in Gaza.

Though Trump this week said he was “not going to take a position” on recognizing a Palestinian state, he later said that such a move would be rewarding Hamas, whose surprise Oct. 7, 2023, attack on Israel prompted a declaration of war and a massive military retaliation from Israeli Prime Minister Benjamin Netanyahu.

Trump’s new cudgel against Canada comes after he sought this week to impose steep tariffs on Brazil because it indicted former President Jair Bolsonaro, a Trump ally who like the U.S. president has faced criminal charges for attempting to overturn the results of his election loss.

Citing a personal grievance in trade talks with Brazil and now Canada’s symbolic announcement on a Palestinian state adds to the jumble of reasons Trump has pointed to for his trade war, such as stopping human trafficking, stopping the flow of fentanyl, balancing the budget and protecting U.S. manufacturing.

Associated Press writer Rob Gillies in Toronto contributed to this report.

FILE - From left, French President Emmanuel Macron, Canadian Prime Minister Mark Carney and President Donald Trump arrive for the family photograph during the G7 Summit in Kananaskis, Alberta, June 16, 2025. (Adrian Wyld/The Canadian Press via AP, File)

FILE - From left, French President Emmanuel Macron, Canadian Prime Minister Mark Carney and President Donald Trump arrive for the family photograph during the G7 Summit in Kananaskis, Alberta, June 16, 2025. (Adrian Wyld/The Canadian Press via AP, File)

AL HENAKIYAH, Saudi Arabia (AP) — Ricky Brabec deliberately gave up his motorbike lead over Luciano Benavides in the Dakar Rally while Nasser Al-Attiyah was happy to cruise through another day closer to his sixth car title on Thursday.

Al-Attiyah started 346-kilometer stage 11 between Bisha north to Al Henakiyah with a 12-minute overall lead and let it drop to less than nine minutes over new second-placed driver Nani Roma in a Ford.

Al-Attiyah was content to let Dacia teammate Sébastien Loeb catch up and pass him to have a teammate nearby for any help and to minimize errors on the mazy, dirt track. Al-Attiyah was 17th, nearly 13 minutes behind stage winner Mattias Ekström, and said he needed to execute the same plan on Friday's last effective racing stage before the end on Saturday.

“If we lose two, three, four minutes no problem,” Al-Attiyah said. “We just need to finish this Dakar in first place.”

Honda cooked up a strategy in the Saudi desert for Adrien van Beveren to open the way and let Brabec catch up after the 190-kilometer pit stop and pick up time bonuses.

Brabec boosted his overall lead from 56 seconds to nearly four minutes just 25 kilometers from the finish. He was also within a minute of the stage lead but he slowed down so KTM rival Benavides was the new overall leader, but only by 23 seconds.

Brabec got his his wish to start Friday's stage 12 six minutes behind Benavides, so he can eye him. They head west to the rally starting point of Yanbu on the Red Sea coast on 311 kilometers of gravel, some river beds with a finish in the dunes.

“A little bit of strategy today and hopefully it pays off tomorrow,” Brabec said. "I feel like its going to be a good day. We’re going back into the rocks so it will be a little bit better for us.”

Brabec is counting on his experience of winning the Dakar in 2020 and 2024 to trump Benavides, who has a best placing of fourth last year.

“I've been in this situation before,” Brabec said. “For the whole two weeks I've been just trying to stay relax, stay comfortable and just be confident, so two days more. I'm gonna do the same thing tomorrow that I've been doing every day; ride dirt bikes and have fun.”

Van Beveren helped Brabec with navigation while fighting with another teammate, Skyler Howes, the entire day for the stage win.

Howes prevailed by 21 seconds for his first career major stage in his eighth Dakar. He was third in 2023 and sixth last year. He's running fifth, 34 minutes off the pace.

Benavides was fourth in the stage and believed the race will be decided on the final 105-kilometer sprint on Saturday.

“I played no strategy like Ricky. I don't care,” Benavides said. “I'm doing what I can to control what I can control.”

Ekström won his third car stage of this Dakar, a special so fast that 12 other drivers were within 10 minutes.

Ford achieved another 1-2-3 stage. Romain Dumas, a three-time winner of the Le Mans 24 Hours, was a career-best second just over a minute back and Carlos Sainz was third.

Only Toyota's Henk Lategan beat Ekström to a checkpoint but Lategan's podium hopes were wrecked after 140 kilometers when a bearing broke on his rear left wheel. Lategan was second last year and second overall overnight but he plunged out of the top 15, at least.

Loeb moved up to third overall, 10 minutes behind Roma and three minutes ahead of Ekström.

AP auto racing: https://apnews.com/hub/auto-racing

Rider Daniel Sanders competes during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Rider Daniel Sanders competes during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Driver Nasser Al-Attiyah and co-driver Fabian Lurquin compete during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Driver Nasser Al-Attiyah and co-driver Fabian Lurquin compete during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Rider Skyler Howes competes during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Rider Skyler Howes competes during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Driver Henk Lategan, left, and co-driver Brett Cummings repair their car during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Driver Henk Lategan, left, and co-driver Brett Cummings repair their car during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Driver Nani Roma and co-driver Alex Haro compete during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

Driver Nani Roma and co-driver Alex Haro compete during the eleventh stage of the Dakar Rally between Bisha and Al Henakiyah, Saudi Arabia, Thursday, Jan.15, 2026. (AP Photo/Thibault Camus)

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