OTTAWA (Reuters) -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 federal minister responsible for Canada-U.S. trade says Canada won’t accept a bad deal from U.S. President Donald Trump’s administration and that there was no viable deal on the table this week.

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

President Donald Trump is back at the White House defending new tariffs set to take effect Thursday. Canada, facing a possible 35% tariff.

Under the executive order, Trump has kept an existing baseline 10% tariff for about 100 countries, and reciprocal tariff rates for 70 countries will range from 15% to 41%. A separate order also raised tariffs on goods from Canada from 25% to 35% “to address the flow of illicit drugs” across the northern border.