Prime Minister Justin Trudeau on Friday said U.S. President Donald Trump's talk about absorbing Canada "is a real thing" and is linked to the country's rich natural resources, a government source said.

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".