Economy

G7 seeks unity beyond tariffs in Canada meeting

Monday 19 May 2025 - 13:32

By: Zahouani Ilham

G7 seeks unity beyond tariffs in Canada meeting

Finance leaders from the G7 nations will convene this week in Banff, Alberta, aiming to project unity on issues that go beyond U.S. President Donald Trump's recent tariff hikes. Their agenda includes economic security, support for Ukraine, collaboration on artificial intelligence, and backing for global institutions like the IMF and World Bank.

While the tariffs remain a central concern especially with several G7 members facing sharp increases in U.S. import duties officials are expected to avoid direct confrontation. Instead, they aim for a more cautious joint statement that highlights shared goals while preserving the group's cohesion.

U.S. Treasury Secretary Scott Bessent, known for his more measured approach compared to Trump's hardline stance, is expected to face calls from fellow ministers to ease trade tensions and avoid policies that undermine allied cooperation. Japan, Germany, France, Italy, Canada, and the UK all have significant stakes, with some already negotiating to reduce the impact of U.S. tariffs.

Bessent, a vocal critic of China's export-driven policies, will use the summit to emphasize countering non-market practices and restoring global economic balance. While some ministers hope to use the opportunity to secure bilateral deals, broader agreements may rely on softer language and diplomatic compromise.

Ukraine will also feature prominently, with Finance Minister Serhii Marchenko present and discussions underway about tightening sanctions on Russia. However, any formal commitments are likely to be less detailed than in previous meetings, such as last October’s $50 billion loan arrangement backed by Russian frozen assets.

Despite these challenges, Canada the summit’s host is pushing for a unified statement that signals collective resolve on a variety of global concerns, including anti-money laundering and financial crime prevention. This week’s meeting will serve as a key precursor to the upcoming G7 leaders’ summit in June.