Trump says Canada's Palestine statehood stance may hurt trade deal

U.S. President Donald Trump said on Thursday it will be difficult to make a trade deal with Canada after the country announced it is backing Palestinian statehood.

Canadian Prime Minster Mark Carney's office did not immediately respond to a request for comment.

Carney announced on Wednesday that Canada is planning to recognize the State of Palestine at a meeting of the United Nations in September.


Canada's announcement follows France and Britain in recognizing a Palestinian state.

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Israel and its closest ally, the U.S., both rejected Carney's statements.

Canada and the U.S. are working on negotiating a trade deal by August 1, the date Trump is threatening to impose a 35% tariff on all Canadian goods not covered by the U.S.-Mexico-Canada trade agreement.

Carney said on Wednesday that tariff negotiations with U.S. President Donald Trump's administration have been constructive, but the talks may not conclude by the deadline.