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

"Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh' Canada!!!" he wrote on Truth Social.

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

Carney announced on Wednesday that Canada is planning to recognise a Palestinian state at a meeting of the United Nations in September.

Canada's announcement followed similar moves by France and Britain.

Israel and its closest ally, the United States, 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 percent tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement.

Carney said on Wednesday that tariff negotiations with the Trump administration have been constructive but that the talks may not conclude by the deadline. (Reuters)