Canadian Prime Minister Mark Carney has said Ottawa was carrying out "very complex" negotiations with US President Donald Trump, who has slapped tariffs on Washington's northern neighbour, among other disputes.
"We're having a very complex negotiation about a wide range of issues ... you don't expect to have specific progress as things move along, even when you're making progress," Mr Carney told reporters after a meeting with Mr Trump.
During their meeting in the Oval Office of the White House, Mr Carney told Mr Trump that Canada was not for sale and would not become the 51st state of the United States.
The meeting started with smiles and a handshake despite Mr Trump's desire to annex Canada, a prospect that has chilled bilateral relations. The subject quickly came up as they took questions from reporters.
Watch: Carney tells Trump Canada 'won't be for sale'
"We're not going to be discussing that unless somebody wants to discuss it," Mr Trump said. "It would really be a wonderful marriage."
However, Mr Carney said Canada was "not for sale, won't be ever".
"Never say never, never say never," Mr Trump replied.
Mr Trump, whose tariff policy has rattled world markets, said he and Mr Carney would discuss "tough points," an allusion to the president's belief that the United States can do without Canadian products.
"Regardless of anything, we're going to be friends with Canada," he said.
Mr Carney's Liberal Party won the 28 April election on promises to tackle Mr Trump and create a new bilateral economic and security relationship with the United States.
Shortly before Mr Carney arrived, Mr Trump posted a message on social media.
Watch: Trump welcomes Carney to White House ahead of meeting
"I look forward to meeting the new Prime Minister of Canada, Mark Carney. I very much want to work with him, but cannot understand one simple TRUTH - Why is America subsidising Canada by $200 Billion Dollars a year, in addition to giving them FREE Military Protection, and many other things? We don't need their Cars, we don’t need their Energy, we don’t need their Lumber, we don’t need ANYTHING they have, other than their friendship, which hopefully we will always maintain. They, on the other hand, need EVERYTHING from us! The Prime Minister will be arriving shortly and that will be, most likely, my only question of consequence."
Mr Carney, a 60-year-old ex-central banker with no previous political experience, was elected Liberal leader in March to replace Justin Trudeau, who had a poor relationship with Mr Trump.
"It's important to get engaged immediately ... and I'm pleased to have the opportunity for quite a comprehensive set of meetings," Mr Carney told a press conference on Friday, adding he expected the talks to be difficult yet constructive.
He played down the idea of immediate breakthroughs.
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"Do not expect white smoke out of that meeting," Mr Carney said, referring to the signal the Vatican sends to indicate a new pope has been chosen.
Canada is the US's second-largest individual trading partner after Mexico, and the largest export market for US goods.
More than $760 billion in goods flowed between the two countries last year, and while Canada has run a trade surplus of more than $60bn in the last two years, most of that stems from its status as the largest foreign supplier of oil to the US.
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Ahead of the meeting, the US Commerce Department reported Canada's goods trade surplus with the US narrowed to a five-month low in March, the month when Mr Trump's hefty tariffs on imported steel and aluminium took effect.
Canadian exports to the US plunged by $3.7bn, the second-largest drop on record.
Canadian data showed the drop in US exports was almost compensated by an increase to the rest of the world, as Canadian companies sought new markets.
Mr Trump in March imposed a 25% tariff on all steel and aluminium imports and then slapped another 25% tariff on cars and parts that did not comply with a North American free trade agreement.
On Sunday, Mr Trump said he would put a 100% tariff on all movies produced outside the US, without giving details, in a potential blow to Canada's film industry.
