Additionally, Canada is the leading supplier of steel and aluminum to the US and is confronting tariffs on these metals as well as on vehicle exports.

Canada’s announcement follows France, UK

France, Canada, and the UK have all indicated their intent to acknowledge Palestinian statehood, while US President Donald Trump has contended it would “grant favor to Hamas”. Source: AAP / Ludovic Marin / Pool / EPA

United Kingdom Prime Minister Keir Starmer, meanwhile, said the UK would recognise statehood at the UN General Assembly unless Israel took “substantive steps to end the appalling situation in Gaza”.

In his announcement, Carney said Canada condemned “the fact that the Israeli government has allowed a catastrophe to unfold in Gaza”.

Ten G20 countries already recognise Palestine as a state. Source: SBS News

He said his decision was informed by Canada’s “long-standing” belief in a two-state solution, and that the reality on the ground, including starvation of people in Gaza, meant that goal was “being eroded before our eyes”.

Carney explained that the intended recognition is partly based on continuous assurances from the Palestinian Authority, representing the Palestinian state at the UN, that it was overhauling its governance and is prepared to hold general elections in 2026 where Hamas “will not have any involvement.”