U.S. President Donald Trump said on July 31 it would be “very hard” to reach a trade agreement with Canada after Prime Minister Mark Carney announced plans to recognize a Palestinian state.
Trump’s remarks come one day ahead of the Aug. 1 deadline for a new tariff agreement between the two nations. Canada is the second-largest U.S. trading partner, buying $349.4 billion of U.S. goods in 2024 and exporting $412.7 billion to the United States.