Canada's recognition of Palestinian statehood will make it tougher for the U.S. to agree 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.

Canada faces a 35 percent tariff on its exports to the United States if it does not reach a trade deal with the Trump administration by Friday.

July 31 (Reuters) - U.S. President Donald Trump intensified his trade war with Canada a day ahead of his August 1 deadline for a tariff agreement, saying it would be "very hard" to make a deal with Canada after it gave its support to Palestinian statehood.