"Remember the visit from Prime Minister Trudeau to Washington, the message was, 'It's going to be very easy to solve the relationship with Canada.' The one that is complex and very hard is the relationship with Mexico", Guajardo said.
The pressure came one day after the US president again blasted the Canadian dairy industry during his announcement of a trade agreement with Mexico that he said could replace NAFTA.
Ottawa is also ready to make concessions on Canada's protected dairy market in a bid to save the dispute-settlement system, the Globe and Mail reported on Tuesday.
"It's time for our countries to resolve these issues and lock in an updated track agreement", said Steve Nelson, the group's president.
The U.S. -Mexico deal includes more detailed rules of origin for automobiles deemed much better for the region and the U.S., according to a senior administration official. He threatened to proceed without Canada if Trudeau did not negotiate "fairly". Trudeau has said that Canada's not going to be pushed around by the United States.
"Notwithstanding President Trump's indication that he might finalize a new deal without Canada, a trilateral deal still seems more likely, in our view, and lawmakers on Capitol Hill may deem it essential", ClearView analysts said.
"They may have some problems with the kinds of concessions we need", Ross told the Fox Business News program Mornings With Maria. "The president has made clear that's not something that's agreeable to him".
Trade expert Eric Miller, who runs a Washington consulting firm, Rideau Potomac Strategy Group, agrees the Friday deadline set by Trump is not in the cards. But he said it has to be "a good deal which is in the interests of the American economy, the American workforce, American farmers".
Quebec, a province in which the dairy lobby is particularly prominent is now facing a provincial election.The Quebec Liberal Party leader Phillippe Couillard warned the federal government of political consequences if any concessions are made on supply management.
The prime minister simply repeated his mantra that his government will protect supply management at all costs.
White House economic adviser Larry Kudlow hammered the point on Tuesday, saying the United States would not accept continued steep tariffs on dairy exports, which can reach as high as 300 percent.
Some American dairy farmers have complained about Canada's steep tariff on dairy products, which averages 249%.
He also warned he would terminate the 24-year-old NAFTA, a treaty between Canada, the US and Mexico that has been economically significant for the continent. European markets were also higher at mid-day. They also note that while certain sectors of USA manufacturing were hurt by NAFTA, American consumers and companies - and workers in some industries, like agriculture - benefited from it.
While Trump called NAFTA "the worst deal ever" during his presidential campaign and after taking office, he also blamed the agreement for the increase in the U.S.' trade deficit.
"I don't see why Canada wouldn't be OK with the terms as is", Wakefield said by phone. It made no mention of Class 7.
Canadian government officials were not available for an immediate comment on Wednesday. The dairy sector has repeatedly attracted Trump's fury.
"We also know that the USA has backed down with respect to including a sunset clause. We're not going to stand for that", he said.
The crucial phase of talks began Tuesday continuing late into the night, and Trudeau expressed optimism the countries could reach agreement by the end of the week.