Dominic LeBlanc, the country’s point person for U.S-Canada relations, said Trump was smiling when he first made the comment during a dinner at Mar-a-Lago with Prime Minister Justin Trudeau in late November.

“The joke is over,” said LeBlanc. “It’s a way for him, I think, to sow confusion, to agitate people, to create chaos knowing this will never happen.”

How does Trump want to take over Canada?

Trump keeps floating the idea that Canada should join the United States as the 51st state, saying Tuesday he would not use military force to invade the country, which is home to more than 40 million people and is a founding NATO partner.

Instead, Trump said he would rely on “economic force” as he erroneously cast the U.S. trade deficit with Canada — a natural resource-rich nation that provides the U.S. with commodities like oil — as a subsidy.

“It’s becoming very counterproductive,” LeBlanc said, referring to Trump’s rhetoric about Canada.

LeBlanc has been talking to incoming Trump administration officials about increasing border security in an effort to avoid a sweeping 25% tariff that Trump has threatened to impose on all Canadian products.

LeBlanc, recently appointed to the role after the abrupt resignation of the previous finance minister, also announced he won’t run to replace Trudeau so he can focus on the tariff threat. Trudeau announced Monday he will resign as prime minister and will stay on until a new Liberal leader is chosen.

“The timing is awful for sure,” said Liberal lawmaker Judy Sgro of the leadership change. “But we will do what we have to do to ensure that Canada stands strong.”

Asked about Trump’s comments, Sgro said “He should focus on his own issues in his own country, because he’s got lots of them.”

Could Canada actually become the 51st state?

Canadian Immigration Minister Marc Miller also fired back, dismissing Trump’s comments as “ridiculous.”

“There is no chance of us becoming the 51st state. I think that this is beneath a president of the United States,” Miller said. “I said a few weeks ago that this whole thing was like a South Park episode.”

Trump refused to rule out acquiring Greenland and the Panama Canal by military force and has said the U.S doesn’t need anything from Canada, including automobiles, lumber and dairy products.

“I don’t know who is misinforming him,” Ontario Premier Doug Ford said. “Right now we ship 4.3 million barrels of crude oil into the U.S. 60 percent of their energy imports are coming from Canada.”

How much does the U.S. import from Canada?

The U.S. imports approximately 60% of its crude oil from Canada, with Alberta alone supplying 4.3 million barrels per day. According to the U.S. Energy Information Administration, the U.S. consumes about 20 million barrels a day, while domestically producing about 13.2 million barrels a day. This means about quarter of the oil the U.S. consumes every day is from Canada.

Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.

Ford said Canada will retaliate if Trump imposes tariffs, saying that a wide range of U.S. products shipped to Canada will be targeted, but he declined to specify which ones.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security.

Foreign Minister Mélanie Joly said she never takes Trump’s threats lightly.

“At the same time we can’t take the bait,” Joly said. “We have to show we have a strong economy and we are strong and we are not going to be annexed.”