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.

Trump has justified tariffs on goods from Canada, the top U.S. export market, by accusing it of failing to stop the cross-border flow of fentanyl, even though U.S. government data shows Canada accounts for only 1% of the fentanyl that enters the United States.

After Canada failed to strike a trade deal with Washington, the president raised tariffs on some Canadian exports this week.