Canada-US talks are at an intense phase, some tariffs likely, says Carney

OTTAWA (Reuters) -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.

The two sides are working towards an agreement by August 1, the date U.S. President Donald Trump is threatening to impose a 35% tariff on some Canadian imports.

"The negotiations are at an intense phase. It's a complex negotiation ... we will only sign a deal that's the right deal," Carney said.

"There is a landing zone that's possible, but we have to get there, and we'll see what happens," he told a televised press conference in the Atlantic province of Prince Edward Island.

The United States struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods.

Carney said earlier this month that Canada - which sends 75% of its exports to the United States - would most likely have to accept some tariffs.

"It's improbable that there will be deals without any tariffs at all," he said when asked whether Canada would escape being hit. "But there is a question about the level, there are questions about the size of tariffs."

(Reporting by David Ljunggren and Promit Mukherjee; Editing by Chizu Nomiyama )

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