Talks between Canada and the United States on a trade deal are at an intense phase, Prime Minister Mark Carney told reporters on Monday, reiterating that an agreement without any tariffs at all was unlikely.

Trump’s tariffs on Canadian steel and aluminum, autos and goods not covered by the U.S.-Mexico-Canada trade agreement have upended the status quo. He has threatened to raise some of those tariffs to 35 percent by Aug. 1. Canada sends more than 75 percent of its exports to the U.S.