The tariff negotiations between the US and Canada have hit a deadlock, and hopes for an agreement are gradually fading

As a new round of tariffs is set to take effect on Wednesday, the Trump administration has lowered expectations for a last-minute deal between the U.S. and Canada. Sources say the likelihood of reaching an agreement on Tuesday is "50-50 or lower."

Both sides face a midnight deadline, at which point billions of dollars' worth of Canadian goods will be subject to a 50% tariff. Trump is expected to speak again with Canadian Prime Minister Carney on Tuesday.