U.S. President Donald Trump signalled Friday that he may not reach a deal with Canada, suggesting the northern neighbour will “just pay tariffs.”

“We haven’t really had a lot of luck with Canada,” Trump told reporters outside the White House. “I think Canada could be one where they’ll just pay tariffs, not really a negotiation.”

Trump made the remarks while discussing other trade deals that had been reached with countries ahead of his Aug. 1 deadline.

The remarks come just a day after Canada-U.S. Trade Minister Dominic LeBlanc told reporters he was feeling “encouraged” following meetings with both Commerce Secretary Howard Lutnick and American lawmakers.

However, LeBlanc had also suggested a new economic and security deal would not be signed before Aug. 1.

“Canadians expect us to ta

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