Negotiators at talks to modernize NAFTA are running out of time and look set to extend the remaining rounds in a bid to meet an end-of-year deadline as tensions rise, three sources said on Sunday.

The Trump administration, which is demanding big changes to the North American Free Trade Agreement, has presented a series of hard-line proposals that partners Canada and Mexico say will be tough to accept.

Sources say neither nation will walk away from the talks, preferring instead to stay at the table and gradually work out what compromises they might be able to wrest from the U.S. side.