US President Donald Trump intensified his trade war with Canada a day before the August 1 tariff deadline. He said it would be "very difficult" to reach a deal with Canada after Canada expressed its support for Palestinian statehood.

Trump will impose a 35% tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement if the two countries do not reach a deal by the deadline.

"Wow! Canada just announced its support for Palestinian statehood. That's going to make it very difficult for us to reach a Trade Deal with them," Trump said on Truth Social. Canadian Prime Minister Mark Carney previously said tariff negotiations with Washington were constructive, but they were unlikely to conclude before the deadline. Negotiations between the two countries were in an intense phase, he added, but a deal that would eliminate all US tariffs seemed unlikely.

Canada is the US's second-largest trading partner after Mexico and the largest buyer of US exports. The country purchased $349.4 billion worth of U.S. goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data.

Canada is also a major supplier of steel and aluminum to the United States, and faces tariffs on both metals as well as vehicle exports.

Last month, the Carney administration scrapped a planned digital services tax targeting U.S. technology companies after Trump abruptly canceled trade talks, calling the tax a "blatant attack."

Carney followed in the footsteps of France and Britain when he said Wednesday that his country planned to recognize the State of Palestine at the September United Nations meeting. In announcing the decision, Carney spoke of realities on the ground, including the famine in Gaza. "Canada condemns the fact that the Israeli government has allowed a catastrophe to unfold in Gaza," he said.

Israel and the United States, Israel's closest ally, both rejected Carney's comments. Carney's office did not immediately respond to a request for comment on Trump's post. (alg)

Source: Reuters