Prime Minister Mark Carney said Monday that talks with the United States on a new trade agreement have entered an “intense phase,” adding that it is “improbable” the two sides will reach a pact that eliminates all U.S. tariffs. Speaking in Prince Edward Island, Carney stressed that Ottawa will only sign “the right deal for Canada,” but acknowledged that some levies are likely to remain. Carney’s remarks come as President Donald Trump warns he will impose a 35 per cent tariff on selected Canadian imports if no agreement is reached by 1 August. The Canadian leader first cautioned on 15 July that evidence was scant the White House would accept a tariff-free arrangement, foreshadowing Monday’s assessment. The harder line reflects a broader U.S. strategy. Washington’s framework deal with the European Union announced over the weekend includes a 15 per cent duty on most EU goods and leaves 50 per cent tariffs on steel and aluminum intact. Canada already faces those sectoral levies, plus a 25 per cent duty on vehicles and a 50 per cent copper tariff slated for next month. With roughly three-quarters of Canadian exports destined for the U.S. market, Carney said a “landing zone” still exists, but the talks remain complex.