US President Donald Trump said trade talks with Canada are not a focus for his administration right now, and instead of negotiating a deal he may decide to just leave existing import taxes in place.

With talks at a standstill, a new U.S. tariff threat raises economic tensions as Canada faces a potential 35% penalty outside key trade protections.

Trump said the U.S. has not 'had a lot of luck' with Canada during negotiations on a new trade and security deal, suggesting the two countries may end up with no new agreement.