President Donald Trump said early Thursday it would be “very hard” to reach a trade deal with Canada after the country said it planned to recognize a Palestinian state — throwing talks with Ottawa into question one day before higher U.S. tariffs are set to come into force.

“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump wrote just after midnight Thursday on Truth Social. “That will make it very hard for us to make a Trade Deal with them.”

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