President Donald Trump has ramped up his trade war with Canada a day early in response to Canada's vow to support Palestinian statehood.

Trump is set to impose a 35 percent tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement if he and Canadian Prime Minister Mark Carney cannot make a deal by his August 1 deadline.

But Trump warned in a late night Truth Social post it would be 'very hard' to make a deal with Canada if Carney proceeds with his intention to recognize Palestine.

'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,' Trump wrote.

Trump's 35 percent tariff was announced amidst a string of surprise modifications to his reciprocal tariffs on Thursday.