Canadian Prime Minister Justin Trudeau told a business gathering on Friday that US President Donald Trump’s threat to annex Canada “is a real thing,” two Canadian business leaders who were at the meeting confirmed to CNN.

Prime Minister Justin Trudeau, in a talk with business leaders, said Canada’s wealth of critical minerals are behind Mr. Trump’s comments about making its northern neighbor a U.S. state.

Trump had suggested repeatedly, both in posts on his social media platform Truth Social and in remarks to reporters, that Canada could become a US state instead to avoid the tariffs. He has also referred to the country's prime minister as "Governor Trudeau".