TRENTON, Canada

Israel has had a “common understanding” from the beginning that there would “ultimately” be a two-state solution with Israel and Palestine living in peace side-by-side, Canadian Prime Minister Mark Carney said Tuesday.

During a news conference in New York, where he is attending the 80th session of the UN General Assembly, Carney said that was the hope, but that hope was “receding” as Israel pursued its attacks on Gaza.

He said that recession was the reason Canada officially declared its backing for the state of Palestine this week.

The Canadian prime minister covered a range of issues from questions lobbed by reporters at the news conference, including the purchase of submarines and F-35 fighter jets.

He was also asked if Canadian support for the two-state solution would jeopardize an as-yet-unsigned trade deal with the US. Carney said that does not worry him. He said Canada “has the best trade deal in the world” with the US and that’s the “fundamental point.”

Earlier in the day, US President Donald Trump severely criticized nations who supported Palestine.

As for the future purchase of up to 12 submarines and a fleet of 88 F-35 fighter jets, Carney said Canada is looking for the best price listed by a nation and the deal that accrued the most industrial benefits for Canada.

As nations scramble to make new trade deals in light of the US change in “tone” and imposing of tariffs, Carney said there are still “good prospects,” especially for Canada.

But he also acknowledged that the hard line taken by the US under Trump can be intimidating.

“This is not a transition,” Carney said, “it is a rupture.”