Still, in a letter addressed to Carney last week, Trump advised that Canadian goods imported into the U.S. could face a blanket 35 percent tariff starting next month. A White House official, granted anonymity to discuss the negotiations, told POLITICO the administration plans to impose the tariff only on goods that do not comply with the USMCA.

The Canadian prime minister said it may not be possible to escape U.S. tariffs even with a bilateral agreement to resolve the current tariff row.

A trade deal with the United States will likely include some tariffs, Prime Minister Mark Carney indicated on Tuesday ahead of a meeting with his cabinet. Carney told reporters he expects the trade talks with the U.