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.

President Donald Trump’s talk about absorbing Canada “is a real thing” and is linked to the country’s rich natural resources, the prime minister said.

Canada could face long term political challenges with the United States even if it manages to avert U.S. President Donald Trump’s threat of tariffs, Prime Minister Justin Trudeau said.