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

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.

President Trump's threat, posted in the early hours Thursday on his social media network, is the latest way he has sought to use his trade war to coerce countries on unrelated issues and is a swing from the ambivalence he has expressed about other countries making such a move.