Trump said it would be “very hard” to reach a deal with Canada after the country said it plans to recognize a Palestinian state in September.

Canada's recognition of Palestinian statehood will make it tougher for the U.S. to agree to a trade deal with its northern neighbor, President Donald Trump warned overnight, with just a day to go until the deadline the White House has set for tariffs to snap higher.

After Canada failed to strike a trade deal with Washington, the president raised tariffs on some Canadian exports this week.