Trump: Canada backing Palestinian statehood makes striking a trade deal "very hard"

President Trump suggested early Thursday that he won't make a trade deal with Canada after Prime Minister Mark Carney said he intends to recognize the State of Palestine, subject to certain commitments.Why it matters: The threat comes one day before Trump's Aug. 1 deadline for countries to make a trade deal with the U.S. or face tariffs — in Canada's case, a 35% levy on goods imported from the North American neighbor and significant trading partner.What he's saying: "Wow! Canada has just announced that it is backing statehood for Palestine," Trump wrote on Truth Social. "That will make it very hard for us to make a Trade Deal with them. Oh' Canada!!!"Context: Carney said Wednesday he would take the action at the UN General Assembly in September, subject to a set of commitments by the Palestinian Authority.Carney's joins two other close U.S. allies in taking the action, further isolating the Trump administration and Israel's government internationally, per Axios' Barak Ravid. France announced a similar plan and the U.K. said it would do the same unless Israel moves to improve the humanitarian situation in Gaza and commits to a renewed peace process with the Palestinians.The big picture: The U.S. and Canada have had an off-on trade war and for months.Last month, Trump threatened to cease trade talks with Canada and impose tariffs due to a digital services tax that Canadian officials later rescinded to advance broader negotiations.Go deeper: Trump ends de minimis tariff exemption, sets copper and Brazil leviesEditor's note: This is a breaking news story. Please check back for updates.

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