President Donald Trump on Thursday raised the tariff rate on Canadian goods from 25% to 35%, effective Friday. As other countries have struck deals to bring their tariff rates down, Canada has found its tariff rate trending upward, after the Canadian government announced plans to recognize Palestinian statehood in September.

Trump’s Canadian tariffs operate separately from the global tariffs he implemented in April. In early February, Trump declared a national emergency due to the inflow of fentanyl and other drugs across America’s borders. He used the emergency to impose 25% sanctions on goods coming from Canada and Mexico. Trump is concerned about the trade deficit in goods that the U.S. has with both Canada and Mexico, among many other countries.

“Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States,” declared a White House fact sheet. “In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency.”

Notably, “Goods qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA) continue to remain not subject to the IEEPA Canada tariffs,” the White House added. The USMCA covered 60% of all U.S. imports from Canada in May, up from 34% in January.

Hours before Trump imposed these higher tariffs on Canada, he criticized its government for supporting Palestinian statehood.

On Wednesday, Canada followedFrance and the U.K. in announcing its intention to recognize a non-existent state of Palestine at the U.N. General Assembly in September.

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

Later Thursday, Trump clarified that Canada’s recognition of Palestine did not make a trade deal impossible, even if it added a hurdle. “I didn’t like what they said, but that’s their opinion,” he told reporters. Thus, it was “not a dealbreaker, but we haven’t spoken to Canada today.”

Trump was far less critical of France and the U.K. Trump told reporters that France’s decision was “not going to change anything,” while he responded to the U.K.’s decision, “We have no view on that.” Trump reached a trade deal with the U.K. in June, and he announced a trade deal with the European Union (which includes France) last week.

The treatment Canada received Thursday also contrasts with Mexico’s situation. On Thursday, Trump announced he would hold tariffs on Mexican goods steady (at 25%, except for goods covered by the USMCA) for another 90 days, to give the countries more time to strike a trade deal. “More and more, we are getting to know and understand each other,” he wrote. “The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border.” Trump also announced Mexico was working “to immediately terminate its non-tariff trade barriers.”

Canadian Prime Minister Mark Carney initially established a good relationship with Trump. However, in June, Trump halted trade talks due to Canada’s new digital services tax, calling them “difficult.” The Canadian government offered to rescind the tax, but it has not been restored to Trump’s good graces.

After Trump’s latest announcement, Carney said Friday he was “disappointed” by Trump’s decision to raise tariffs.

Carney isn’t the only one. On Thursday, Senator Kevin Cramer (R-N.D.) responded to Canada’s decision to recognize a Palestinian state on “Washington Watch,” remarking, “I’m so disappointed in our friends in Canada because they’ve got to know better than to believe the propaganda of killers like Hamas. … It’s very frustrating to me that our friends in France and U.K. and Canada … have caved, if you will, to this propaganda campaign.”