U.S. President Donald Trump has stated that Canada's announcement to recognize a Palestinian state will make it "very hard" to reach a trade deal between the two countries. Canada plans to formally recognize Palestine at the United Nations General Assembly in September, conditional on the Palestinian Authority implementing major reforms, including elections in 2026 excluding Hamas and full demilitarization. This move follows similar recognition plans by the UK, France, and Portugal, signaling a growing shift among G7 nations toward supporting Palestinian statehood. The announcement has intensified trade tensions between the U.S. and Canada, with Trump emphasizing the difficulty in finalizing a tariff agreement ahead of the August 1 deadline. Separately, Canada has recently delivered humanitarian aid to Gaza via airdrops amid ongoing Israeli military operations, while accusing Israel of violating international law. The international community's increasing support for Palestinian statehood coincides with rising concerns over the humanitarian crisis in Gaza.