G7 Faces Tensions Over Trump’s Tariffs Ahead of Summit

Post by : Layla Badr

Photo: AP

Canada’s Finance Minister, François-Philippe Champagne, has said that U.S. President Donald Trump’s tariffs are creating tensions among G7 countries. These tensions are building just before an important G7 summit in Canada next month.

Champagne and Bank of Canada Governor Tiff Macklem are hosting three days of meetings this week in Banff, Alberta. Finance leaders from the world’s top economies are attending. They are mainly expected to talk about the war in Ukraine, the growth of artificial intelligence, and how G7 countries can support global economic growth.

But Trump’s strong trade policies—especially the tariffs he’s put on other countries—are likely to be the main issue in the talks. These policies might even make it hard for the countries to agree on anything.

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Champagne told in Calgary that finding unity is important, but the tariffs are clearly causing friction between G7 partners. He also pointed out that, after COVID-19, countries are under pressure financially. Many need to spend more on things like defense, housing, and infrastructure.

“My job as chair,” Champagne said, “is to make sure we work together, reduce the uncertainty we see in the markets, and focus on growth that helps everyone.”

Other G7 officials also want to solve the trade problems with the U.S. before this week’s meetings begin. German Finance Minister Lars Klingbeil said in Berlin that “tariffs and uncertainties are hurting our economy and job security.”

At the Banff meetings, U.S. Treasury Secretary Scott Bessent will represent the Trump administration. Champagne did not say whether he or other finance ministers will ask Bessent to remove the tariffs. Bessent and other U.S. officials have said the tariffs are staying for now—unless new trade deals are made to reduce them.

A spokesperson for the U.S. Treasury said Bessent plans to ask G7 members to fix unfair practices in their own countries too, and to work together against China’s unfair economic system.

“The G7 must protect our workers and businesses from China’s unfair behavior,” the spokesperson said.

At a press event later, Champagne admitted that the finance ministers will be talking about the big issues. He said he’s looking forward to working with Secretary Bessent and that all the other officials are ready for honest and open talks.

This week’s finance meeting is leading up to the G7 Leaders’ Summit, which will take place from June 15 to 17 in Kananaskis, Alberta. President Trump, Canadian Prime Minister Mark Carney, and leaders from Japan and Europe will be there to discuss important issues face-to-face.

Energy Projects and Working Together

While in Calgary earlier on Tuesday, Champagne met with Alberta Premier Danielle Smith. They talked about expanding Canada’s energy production. Champagne said holding the G7 finance meetings in Alberta is a good way to show off the province’s potential to supply oil, gas, and other resources to the world.

“This morning was all about opportunities,” Champagne said. “We’re looking at how we can build a better future for Canada together.”

He added that both federal and provincial leaders are looking into ways to get more oil to markets and work on shared projects.

Champagne also met with Ukraine’s Finance Minister, Sergii Marchenko, before heading to Banff. Marchenko will take part in some of the meetings too. Champagne said they talked about how Canada can support Ukraine’s rebuilding efforts, including help with energy, infrastructure, and housing.

“There’s a moral duty to support Ukraine,” Champagne said. “But Canada also has a lot to offer, especially in energy, oil and gas, and construction.”

Last year in Italy, G7 leaders promised to keep Russian assets frozen and use the money to help Ukraine. But since President Trump returned to office in January, he has been less supportive. He even asked Ukraine to agree to a deal on critical minerals in return for U.S. aid.

On Tuesday, the European Union and the UK announced new sanctions against Russia—without waiting for the U.S. This came just one day after Trump spoke on the phone with Russian President Vladimir Putin. That call did not lead to a ceasefire or new U.S. actions against Russia.

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