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.

After Canada failed to strike a trade deal with Washington, the president raised tariffs on some Canadian exports this week.

OTTAWA—Canadian Prime Minister Mark Carney said bilateral talks with Washington to resolve the tariff row might not lead to a deal before the Aug. 1 deadline. Senior officials are in Washington to find an agreement that is suitable for Canada,