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.

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

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.