U.S. President Donald Trump said on Wednesday that Canadian Prime Minister Mark Carney reached out ahead of an August 1 tariff deadline, but no conversations between the two took place.

Trump has warned that any country that does not strike a deal with the U.S. before Friday will be subjected to higher tariffs imposed on goods, which for Canada could mean a 35% rate on all products not covered by the U.S.-Mexico-Canada trade agreement.

"We haven't spoken to Canada today. He's (Carney) called and we'll, we'll see," Trump told reporters during an event at the White House.

Carney's office did not immediately respond to a request for comment.

The Canadian leader previously said trade talks with Washington had been constructive, but the talks may not conclude by the deadline. Talks between the two countries were at an intense phase, he added, but a deal that would remove all U.S. tariffs was unlikely.

Earlier on Thursday, Trump said it would be "very hard" for the U.S. and Canada to strike a deal after Ottawa moved toward recognizing Palestinian statehood. He said later on Thursday, however, that he did not view the move as "a deal breaker" in trade talks.

"Well, they have to pay a fair rate - that's all. It's very simple. They have been charging very, very high tariffs to our farmers, some over 200% and they've been treating our farmers very badly," Trump said when asked about negotiations.

He added that while he loves Canada, it has treated the United States "very badly" for years.

U.S. Commerce Secretary Howard Lutnick said Canada could avoid the 35% tariff rate if Carney "starts turning on the charm and if he takes off his retaliation.

Source: Investing.com