Canadian Prime Minister Justin Trudeau speaks to business and labour leaders on investment, trade and international markets amid the looming threat of U.S. protectionism in Toronto, Ontario, Canada, February 7, 2025. REUTERS/Carlos Osorio
TORONTO (Reuters) -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.
Trudeau made the remarks during a closed-door session of business and labor leaders on how best to respond to Trump's threats of tariffs on Canadian imports.
His comments were first reported by the Toronto Star, which said they were mistakenly carried by a loudspeaker.
Trump has repeatedly suggested Canada would be better off if it agreed to become the 51st U.S. state.
"They're very aware of our resources, of what we have and they very much want to be able to benefit from those," the Star quoted Trudeau as saying.
"But Mr. Trump has it in mind that one of the easiest ways of doing that is absorbing our country. And it is a real thing."
The government source confirmed that the Star's account of the remarks was accurate.
Canada, seeking to fend off U.S. measures, has stressed it is a trusted partner and a major supplier of oil, minerals and other natural resources.
In remarks open to reporters, Trudeau had earlier said Canada could face long-term political challenges with the United States even if it manages to avert Trump's threat of tariffs.
Trump on Monday said he would delay the imposition of tariffs on Canadian exports by 30 days in return for concessions on border and crime enforcement, in particular cracking down on fentanyl smuggling.
Trudeau said Ottawa's immediate challenge was to persuade Washington that Canada was doing all it could to combat the flow of fentanyl. Public data shows 0.2% of all the supply of the drug seized in the U.S. comes from the Canadian border.
If tariffs were imposed, Canada would respond in kind, but its goal would always be to have the measures removed as fast as possible, Trudeau told business and labor leaders at the start of the meeting on how to diversify trade and boost the economy.
"The strategic reflection we have to have right now is ... how we get through, and thrive, and grow stronger over the next four years and into what may be a more challenging long-term political situation with the United States?" he said.
Peter Navarro, a senior Trump trade adviser, this week said Canada had become a leading source of small, duty-free shipments of drugs, also had "big" visa issues and had let people on the "terrorism watch list" enter the United States.
Canada sends 75% of all goods and services exports south of the border, making it highly vulnerable to U.S. sanctions.
Trudeau, echoing long-standing complaints from the business community, said internal trade barriers between the 10 provinces were hampering the economy.
"This is one of those moments and opportunities where ... there's a window open because of the context we're in. We have to jump through it," he said.
(Additional reporting by David LjunggrenEditing by Marguerita Choy and Nia Williams)
