Canadian government officials say there's an increasing likelihood that the USA will give six months' notice to withdraw from the North American Free Trade Agreement, according to separate reports from Reuters and Bloomberg.
USA media are reporting that officials in Ottawa are increasingly convinced that Trump will pull his country out of the NAFTA.
Chrystia Freeland also told reporters that Canada had come up with some creative ideas in a bid to solve the toughest challenges facing negotiators when they meet for the sixth and penultimate round of talks to modernize the North American Free Trade Agreement later this month.
The Canadian and Mexican currencies both weakened against the USA dollar after Reuters broke the news.
Canada and Mexico have rejected most of the US proposals for NAFTA reforms, leaving officials with a big job if they are to bridge the large differences at the January 23-28 talks in Montreal.
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Talks to overhaul NAFTA between the U.S., Canada and Mexico began in August but have so far yielded few results.
"On NAFTA, I am working very hard to get a better deal for our country and for our farmers and for our manufacturers", Trump said during a speech Monday at the American Farm Bureau Federation convention in Nashville.
"It's under negotiation as we speak", he said. "When Mexico is making all of that money, when Canada is making all of that money, it's not the easiest negotiation".
Still, the remarks lacked any defense of the pact and didn't erase the notion that Trump may, at any point, decide to ditch the deal.