Canada is also the top supplier of steel and aluminium to the United States, and faces tariffs on both metals as well as on vehicle exports.

Canada’s announcement follows France, UK

France, Canada, and the UK have all signalled they will recognise Palestinian statehood, while US President Donald Trump has argued it would “reward 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 said the planned recognition was based in part on repeated assurances from the Palestinian Authority, which represents the Palestinian state at the UN, that it was reforming its governance and is willing to hold general elections in 2026 in which Hamas “can play no part”.