U.S. President Donald Trump indicated on Friday that ongoing trade negotiations with Canada may not lead to an agreement, stating that the country might “just pay tariffs” instead.

Speaking to reporters outside the White House, Trump said, “We haven’t really had a lot of luck with Canada. I think Canada could be one where they’ll just pay tariffs, not really a negotiation.” His comments came while referencing other international trade agreements the U.S. is aiming to finalize before the August 1 deadline.

The remarks stand in contrast to a more optimistic tone expressed by Canadian Trade Minister Dominic LeBlanc, who had stated just a day earlier that he was “encouraged” following productive meetings with U.S. Commerce Secretary Howard Lutnick and other American lawmakers.

As trade talks continue, Trump’s comments suggest rising tensions that could impact cross-border economic relations between the two nations.