But his comments about Israel mark rare criticism from a president who has publicly sparred with the Palestinians while forging warm ties with Israel ahead of the expected presentation of a US peace outline.
"So we are just going to have to see what happens", Trump told Israel Hayom newspaper.
Asked by daily when the United States would present its peace plan, Trump said: "We will see what happens".
"Right now the Palestinians aren't willing to to make peace, they're not. And I am not necessarily sure that Israel is looking to make peace", the president said.
"I don't know frankly if we are going to even have talks, we will see what happens, but I think it is very foolish for the Palestinians and I also think it would be very foolish for the Israelis if they don't make a deal".
Russian Federation already looking to interfere in 2018 midterms Dems pick up deep-red legislative seat in Missouri Speier on Trump's desire for military parade: "We have a Napoleon in the making" MORE said in an interview published on Sunday that both Israelis and Palestinians are playing roles in hindering peace in the region.
Asked whether Israeli settlements would form part of the peace plan, he said: "We will be talking about settlements".
Trump's comments about Israel mark rare criticism from a president who has adopted a hostile policy toward the Palestinians while forging close relations with Israel. "I think Bibi Netanyahu is a terrific person, a terrific leader, I think the relationships are good, but I think they will be a lot better if they ever get to making a peace deal".
In excerpts of the interview published on Friday, Mr Trump said that recognising Jerusalem as Israel's capital had been a highlight of his first year in office.
According to Trump, "both sides will have to make significant compromises in order to achieve a peace deal".
"Israel Hayom" newspaper is owned by prominent Republican mega-donor Sheldon Adelson, and is widely seen as being strongly supportive of Prime Minister Benjamin Netanyahu.
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