The Canadian prime minister said it may not be possible to escape U.S. tariffs even with a bilateral agreement to resolve the current tariff row.

Canadians are divided over how Prime Minister Mark Carney should handle ongoing trade negotiations with U.S. President Donald Trump, as tensions escalate following threats of steep new tariffs.

U.S. President Donald Trump said on Monday that the letters he sent to Prime Minister Mark Carney and other leaders about new tariff rates are “the deals”, as Carney prepares to meet with his cabinet on tariffs and the trade negotiations.

U.S. President Donald Trump is threatening to hit Canadian imports with 35 per cent tariffs on Aug. 1, reviving the trade war between the neighbouring countries.

Canada has made concessions to win goodwill with the White House. Trump, in return, has threatened steeper tariffs.

Canadian Prime Minister Mark Carney responded on Friday to President Donald Trump's threats to impose a 35% tariff on Canada starting Aug. 1, an increase from the initial 25% tariff rate he had set earlier this year.

U.S. President Donald Trump said on Monday that the letters he sent to Prime Minister Mark Carney and other leaders about new tariff rates are "the deals", as Carney prepares to meet with his cabinet on tariffs and the trade negotiations.

Prime Minister Mark Carney says U.S. President Donald Trump has multiple objectives in his trade talks with various countries, including how it will impact the U.S. budget.

President Trump has set an August 1 deadline for several countries to reach trade agreements with the U.S. before they're hit with increased tariffs. CBS News MoneyWatch correspondent Kelly O'Grady reports.