O TTAWA—Canadian Prime Minister Mark Carney said bilateral talks with Washington to resolve the tariff row might not lead to a deal before the Aug. 1 deadline. Senior officials are in Washington to find an agreement that is suitable for Canada, Carney said.

Canada's recognition of Palestinian statehood will make it tougher for the U.S. to agree a trade deal with its northern neighbor, President Donald Trump warned overnight, with just a day to go until the deadline the White House has set for tariffs to snap higher.

Back in April, President Donald Trump had claimed to have done “over 200 deals” in an interview with Time Magazine, and trade adviser Peter Navarro had said that “90 deals in 90 days” was possible. The country has fallen far short of that, with only eight deals in 120 days, including one with the 27-member European Union.