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.

Prime Minister Justin Trudeau said Friday that Canada must think “tactically and strategically” on how to deal with U.S. President Donald Trump’s threats to impose hefty tariffs on all Canadian imports.