The president has repeatedly floated the idea of annexing the United States' northern neighbor

US President Donald Trump has reaffirmed that he is serious about Canada being annexed by the United States.

His statement comes amid an escalating trade war between the two neighbors, and follows a spate of comments from Trump claiming that Canada would be better off as the 51st state of the US.

Speaking to reporters in the Oval Office on Friday, Trump reiterated his prior claims that the US subsidizes its northern neighbor by hundreds of billions of dollars a year, claiming a massive bilateral trade imbalance between them.

"It costs us $200 billion a year in subsidy to keep Canada afloat," he said, adding that the US does not need Canadian exports such as cars, lumber, and energy.

New Canadian Prime Minister Mark Carney, who replaced Justin Trudeau last week, has categorically denied that Canada will ever become part of the US.

"We will never, ever, in any way, shape, or form, be part of the United States," Carney stated after being sworn in last week. Both Canada's national identity and "the economics" make Trump's idea untenable, he said.

The former central banker has vowed to win the trade war with the US, stressing that Canada will need to strengthen its economy and seek alternative trade partners.

Last week, Ottawa imposed 25% tariffs on nearly $30 billion in US imports in response to 25% levies announced by Trump. The US president pulled back on imposing 50% tariffs last week after Canada walked back plans to increase them on American energy imports by a quarter.

Ottawa is ready to sit down and discuss the trade war with Washington, "when Canada is shown respect as a sovereign nation," Carney stressed in a statement on Thursday.