The Canadian team working on a trade deal with the United States could walk away from talks in the wake of a U.S. decision to impose a 35% tariff on some goods from Canada, an adviser to Prime Minister Mark Carney said on Friday.

The Trump administration raised the tariff rate on some Canadian imports to 35% from 25%. Carney has described the talks with the US as difficult, but officials said recent talks had been “informative, constructive and cordial”, and reiterated mutual benefits for both economies.