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.

Both President Donald Trump and Prime Minister Mark Carney have poured cold water on the idea they will reach a quick, and tariff-free, deal. And Trump's open criticism of Canada's move to recognise a Palestinian state dashed hopes for a last minute agreement earlier this week.

Just hours earlier, the U.S. Senate rejected two resolutions introduced by Vermont Senator Bernie Sanders to block arms sales to Israel. While the measures failed, more than half of Senate Democrats supported them, signaling a growing shift in Washington’s stance toward the war in Gaza.