JAKARTA - US President Donald Trump intensified his trade war with Canada a day before the deadline for the tariff agreement on August 1.
Trump said it would be "very difficult" to reach an agreement with Canada after the country provided its support for the Palestinian state.
Trump will charge 35% of all Canadian goods that are not covered by the US-Mexico-Canada trade agreement if the two countries do not reach an agreement before the deadline.
"Wow! Canada has just announced its support for the creation of a Palestinian state. It will make it very difficult for us to reach a trade agreement with them," Trump said at Truth Social.
Canadian Prime Minister Mark Carney previously said tariff negotiations with Washington had been constructive, but the negotiations may not be completed before the deadline.
Negotiations between the two countries are in an intense stage, but the deal to remove all US rates seems impossible.
Canada is the second largest US trading partner after Mexico, and the largest US export buyer.
Canada bought US goods worth $349.4 billion last year and exported $412.7 billion to the US, according to US Census Bureau data.
Canada is also the main supplier of steel and aluminum to the United States, and faces tariffs for both metals and vehicle exports.
Last month, the Carney administration canceled a digital service tax plan targeting US tech companies after Trump suddenly canceled trade negotiations saying the tax was a "discriminate attack."
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Carney followed in the footsteps of France and Britain when he said on Wednesday that his country plans to recognize the Palestinian State at a United Nations meeting in September.
In announcing the decision, Carney spoke of reality on the ground, including hunger in Gaza.
"Canada condemns the fact that the Israeli government has allowed disasters to occur in Gaza," he said.
Israel and the United States, Israel's closest allies, both rejected Carney's comments.
Carney's office did not immediately respond to a request for comment on Trump's post.
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