STORY: U.S. President Donald Trump intensified his trade war with Canada a day ahead of his August 1 deadline for a tariff agreement.
In a Truth Social Post late on Wednesday, Trump expressed surprise over Canadian Prime Minister Mark Carney announcing that Canada plans to recognize the State of Palestine at the U.N. in September, and said (quote) "That will make it very hard for us to make a Trade Deal with them."
Carney's announcement on Wednesday followed similar ones by France and Britain, aiming to put more pressure on Israel to end the war in Gaza.
CARNEY: "Preserving a two-state solution means standing with all people who choose peace over violence or terrorism..."
Carney also said tariff negotiations with the U.S. had been constructive, but the talks may not conclude by the deadline.
CARNEY: "Look, these are complex, they're comprehensive, they're constructive negotiations with the Americans. They're ongoing..."
If a deal is not reached between the U.S. and Canada, Trump is set to impose a 35% tariff on all Canadian goods not covered by the U.S.-Mexico-Canada trade agreement.
Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S. exports.
According to U.S. Census Bureau data, Canada bought close to $350 billion of U.S. goods last year and exported more than $400 billion to its southern neighbor.
