The two countries are aiming for a 1 August deal even after Trump announced a new 35% tariff on imports from Canada last week.

Speaking to reporters in Hamilton, Carney pointed out that U.S. trade deals with other counties are going to involve very high tariffs, but he declined to say what, if any, tariff level would be acceptable for Canada as part of a deal.

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.