Outgoing Canadian Prime Minister Justin Trudeau has privately warned business leaders that U.S. President Donald Trump may be serious about annexing Canada, citing Washington’s growing interest in the country’s critical minerals.

Speaking behind closed doors at the Canada-U.S. Economic Summit in Toronto, Trudeau’s remarks were partially caught on microphone and later reported by multiple Canadian media outlets.

“Mr. Trump has it in mind that the easiest way to do it is absorbing our country, and it is a real thing,” Trudeau said.

Trudeau’s warning comes as Trump intensifies economic pressure on Canada, threatening to impose a 25% tariff on Canadian exports—with the exception of energy products, which would be taxed at 10%—unless Ottawa strengthens border security measures.

While the tariffs have been postponed for 30 days, Trump has repeatedly floated the idea of Canada becoming “our 51st state” as a way to avoid them.

He has even mockingly referred to Trudeau as “Governor Trudeau” in public speeches and on Truth Social.

Trump first brought up the idea of annexation during a private dinner with Trudeau in December, but Canadian officials initially dismissed it as a joke.

However, Trudeau’s latest remarks suggest that Ottawa now sees Trump’s rhetoric as a more serious geopolitical concern.

A January Ipsos poll found that 80% of Canadians would reject any referendum on joining the United States.

Meanwhile, economic uncertainty surrounding Trump’s tariff threats has triggered anxiety in Canada, where three-quarters of exports go to the U.S.

Some provincial leaders have responded by launching “buy local” campaigns, urging Canadians to avoid U.S. goods. Additionally, some Canadian consumers have canceled cross-border shopping trips in protest.

As tensions rise, Canadian officials are working to reinforce economic ties with the U.S. in hopes of preventing the tariffs from taking effect.

Energy Minister Jonathan Wilkinson, currently in Washington, has proposed a Canada-U.S. alliance on energy and critical minerals, calling it a “win-win” solution for both nations.

At Friday’s summit, Trudeau cautioned that Canada faces “a more challenging, long-term political situation with the United States” and emphasized the need for the country to strengthen its own economy and trade relationships in the years ahead.

With Trump’s aggressive economic policies and talk of annexation, the relationship between the U.S. and Canada appears headed for a turbulent period of uncertainty and negotiation.