Canada and the US have been in a trade war since Trump took office in January, with Trump imposing both targeted tariffs on to Canada and global levies that have been painful on certain Canadian sectors.

Canada imposed its own counter measures in response.

Carney did not say on Tuesday if he was willing to accept the levies in any deal with the US.

At the G7 summit in mid-June, he said that he would only sign an agreement "that's in Canada's best interest".

He also indicated that he would be willing to impose further counter-tariffs if Ottawa and Washington could not strike a deal.

In addition to the latest threatened 35% tariff on Canada - an increase from the current 25%, which includes significant exemptions - Trump has imposed a global 50% tariff on aluminium and steel imports, and a 25% tariff on all cars and trucks not built in the US.

The US president also recently announced a 50% tariff on copper imports, scheduled to take effect next month.

Canada sells about three-quarters of its goods to the US, and is an auto manufacturing hub and a major supplier of metals, making the US tariffs especially damaging to those sectors.

Still, much of the cross-border trade between the US, Canada and Mexico is exempt from additional levies under the US-Mexico-Canada Agreement (Cusma).

US media have reported that the agreement remains in place for now.

A recent report from the Royal Bank of Canada stated that Canada's exports to the US fell since April, but compliance with Cusma has risen.
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Around 91% of Canadian exports to the US crossed the border duty-free, the bank said, citing data from the US Census Bureau.

In an interview with the BBC on Monday, Trump said the US was "negotiating with Canada right now" and it was going to "work out very well".

US Attorney General Bondi's critics include far-right conspiracy theorist Laura Loomer, who was frequently seen with Trump on the campaign trail, and billionaire Elon Musk, Trump's biggest campaign donor.

The memo sent out on Monday, jointly released with the FBI, said there was "no incriminating client list" nor evidence to suggest Epstein had blackmailed high-profile figures suspected of being in what conservatives call the "deep state".

The government's findings were made, according to the memo, after reviewing more than 300 gigabytes of data.

The findings follow multiple pledges from Bondi to reveal potentially damaging evidence related to Epstein, including "a lot of names" and "a lot of flight logs".

Many of Bondi's past claims related to the Epstein files, and the possibility of hidden evidence, had been echoed by FBI Director Kash Patel and FBI Deputy Director Dan Bongino.

After the memo was released, frustrations from Bongino led to a contentious meeting between him and Bondi in the White House on Wednesday, according to the BBC's media partner CBS News.

The feud highlighted what some have described as a growing division between the FBI and the Justice Department over the Epstein case.

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On Friday, Loomer claimed on X that she was told Bongino was "seriously thinking about resigning".

Bongino did not show up to work on Friday, according to CBS News sources.

Epstein's sudden death aged 66 in a jail cell inside New York's Metropolitan Correctional Center in 2019 has been a strong source of conspiracy theories for years.

The FBI and Justice Department's memo confirmed that Epstein died by suicide, which many people in Trump's orbit had questioned.

Bondi suggested to Fox News in February that Epstein's client list was "sitting on my desk right now to review".

The Supreme National Security Council is Iran's top decision-making body after Supreme Leader Ayatollah Ali Khamenei.

Last week, Pezeshkian accused Israel of trying to kill him - a claim denied by Israeli Defence Minister Israel Katz, who said "regime change" had not been not a goal of the war.

Israel wiped out many of top IRGC and army commanders at the very start of the war.

Iranian leaders admit they were taken completely by surprise, and there was a decision-making paralysis for at least the first 24 hours after the attack.

Israel officials admitted that Ayatollah Khamenei was also the target - but that they had lost track of him when he was moved to a secure secret location, cut off to a great extent from the outside world.

There are still many questions about how Israel had gathered critical intelligence about the whereabouts of Iran's top officials and commanders - not to mention the locations of sensitive secret facilities.

On 13 June, Israel launched a surprise attack on nuclear and military sites in Iran, saying it acted to prevent Tehran from making nuclear weapons.

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Iran - who retaliated with aerial attacks on Israel - denies seeking to develop nuclear weapons and says its enrichment of uranium is for peaceful purposes.

On 22 June, the US's Air Force and Navy carried out air and missile strikes against three Iranian nuclear facilities.

US President Donald Trump later said the attack "obliterated" the facilities, even as some US intelligence agencies have taken a more cautious view.