Toronto, Canada - Prime Minister Justin Trudeau told an economic summit Friday that President Donald Trump is serious about annexing Canada to access its natural resources, as his government vowed the country's sovereignty was non-negotiable.

Trudeau called the summit of business and labor leaders to coordinate a response to Trump's looming threat of a 25% tariff on all Canadian imports, a penalty that could cripple Canada's economy.

In closed-door remarks, Trudeau told a group of executives that for Trump, "absorbing Canada" is "a real thing," according to multiple Canadian media reports.

"I suggest that not only does the Trump administration know how many critical minerals we have, but that may be even why they keep talking about absorbing us and making us the 51st state," he said.

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The comments, made after media left the room, were audible on a speaker outside the hall and heard by the Toronto Star and public broadcaster CBC.

"They're very aware of our resources, of what we have and they very much want to be able to benefit from those," he further said.

"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."

Asked about Trudeau's comments on the sidelines of the summit and whether Ottawa was concerned Trump's annexation threat was genuine, Industry Minister Francois-Philippe Champagne told AFP, "No one can question the sovereignty of Canada."

"Our American friends understand that they need Canada for their economic security, they need Canada for their energy security and they need Canada for their national security," he said.

Responding to reporters questions about Trudeau's comments, Trade Minister Anita Anand said Canada was resolved to resist any US expansionism.

"There will be no messing with the 49th parallel, period," she said, referring to the US-Canadian border.

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Trump has mocked Canadian sovereignty repeatedly since winning the November election.

He regularly refers to Canada as the "51st state," and has demeaned Trudeau by calling him "governor," instead of prime minister.

Trump has also characterized billions of dollars in daily bilateral trade as a US subsidy and claimed without evidence that Canada would not be "a viable country" without it.

His tariffs were set to come into force on Tuesday, but Trump granted Canada a 30-day reprieve for further negotiations.

He has said tariffs are necessary to force Canadian action on the flow of the drug fentanyl and migrants – neither of which are, in fact, prominent issues on the border – but has also complained about trade deficits.

In opening remarks at the summit, Trudeau said Ottawa would continue to work to address Trump's concerns about fentanyl and migrants, even if Canada was not a significant contributor to either problem in the US.

But beyond the immediate tariff threat, Trudeau said Canada should be prepared for "what may be a more challenging long-term political situation with the United States."