President Donald Trump says Canada’s announcement it'll recognize a Palestinian state “will make it very hard” for the U.S. to reach a trade agreement with it.

O TTAWA—Canadian Prime Minister Mark Carney said bilateral talks with Washington to resolve the tariff row might not lead to a deal before the Aug. 1 deadline. Senior officials are in Washington to find an agreement that is suitable for Canada, Carney said.

Chinese and American trade negotiators concluded their two-day meeting in Stockholm without a clear path forward to avert tariffs from skyrocketing back to ultra-high levels that formed an effective blockade on trade between the world’s two largest economies.