"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."
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.
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The government source confirmed that the Star's account of the remarks was accurate.
