A U.S.-Canada trade agreement remains elusive as high tariffs fuel tensions. Prime Minister Mark Carney and negotiators emphasize the importance of a favorable deal while coping with U.S. imposed tariffs on crucial Canadian sectors.

After Canada failed to strike a trade deal with Washington, the president raised tariffs on some Canadian exports this week.

Prime Minister Mark Carney and US President Donald Trump are expected to talk “over the next number of days,” a Canadian official said, after the two governments failed to reach a deal before an Aug.