No deal for Canada yet to halt tariff increase, as Trump's deadline looms

U.S. President Donald Trump said Thursday he had not spoken with Prime Minister Mark Carney, the day before his deadline to increase tariffs on Canadian products.

Speaking to reporters at the White House Thursday afternoon, Trump was asked whether Carney's announcement that Canada plans to recognize a Palestinian state was a deal-breaker on trade.

"I didn't like what they said, but you know, that's their opinion," Trump said. "Not a deal-breaker. But we haven't spoken to Canada today. He's called and we'll see."

Canada's trade negotiating team is in Washington, but officials were tight-lipped Thursday about who they were meeting with — if anyone.

Trump's comments indicate Canada remains in limbo without a deal to stave off a hike in tariffs.

The tariffs, currently set at 25 per cent, apply to goods that don't meet the rules of origin in the Canada-U.S.-Mexico Agreement, a relatively small portion of Canadian exports to the U.S.

Trump threatened earlier this month to raise that rate to 35 per cent, effective Friday.

Earlier Thursday, Trump announced a 90-day extension of the current tariff regime with Mexico, which was also facing the threat of an increase.