Trump says Canada's Palestine statehood stance may hurt trade deal

US President Donald Trump said on Thursday it will be difficult to make a trade deal with Canada after the country announced it is backing Palestinian statehood.

Canadian Prime Minster Mark Carney's office did not immediately respond to a request for comment.

Carney announced on Wednesday Canada is planning to recognize the State of Palestine at a meeting of the United Nations in September.

Canada's announcement follows France and Britain in recognizing a Palestinian state.

Israel and its closest ally, the US, both rejected Carney's statements.

Canada and the US are working on negotiating a trade deal by August 1, the date Trump is threatening to impose a 35 per cent tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement.

Carney said on Wednesday that tariff negotiations with US President Donald Trump's administration have been constructive, but the talks may not conclude by the deadline.