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.

The order keeps his "reciprocal" 10 per cent baseline tariff rate in place with higher rates for other countries that have yet to sign a new trade deal with the U.S. The White House said Trump was raising the tariff rate because Canada "has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs" into the U.