Washington. U.S. President Donald Trump signed an executive order on Thursday increasing tariffs on Canadian goods from 25% to 35%, the White House reported, noting that the new levies will take effect on August 1.

The tariffs will apply to all products not covered by the trade agreement between the United States, Mexico, and Canada, the White House said.

Goods transshipped to another country to evade the new tariffs will be subject to a 40% transshipment tax, according to a White House fact sheet.

"In response to Canada's continued inaction and retaliation, President Trump has deemed it necessary to increase tariffs on Canada from 25% to 35% to effectively address the ongoing emergency," the White House said.

Trump said earlier Thursday that Canadian Prime Minister Mark Carney had contacted him before the Friday deadline, but no talks had taken place between the two.

"We haven't spoken to Canada today. He (Carney) has called. We'll see," Trump told reporters at a White House event before the 35% rate was announced.

The Canadian leader previously said trade talks with Washington had been constructive, but might not conclude before the deadline.

Talks between the two countries were in an intense phase, he added, but an agreement that would eliminate all US tariffs was unlikely.

Earlier on Thursday, Trump said it would be"very difficult" for the United States and Canada to reach an agreement after Ottawa moved toward recognizing Palestinian statehood. However, he later maintained that he did not view the move as something that could derail trade talks.