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 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.

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".