The Group of Seven (G7) finance ministers and central bank governors met in Canada. Their ambitious goals to address pressing global economic issues were complicated by rising trade hostilities. The meeting developed under the shadow of U.S. threats to slap draconian tariffs on Canada. This context raised the stakes considerably for advocates of international trade and cooperation.
Policy makers from the US, Canada, UK, Japan, Germany, France and Italy were among the many attendees. The meeting was meant to foster solidarity between some of the richest countries on Earth. The resultant treaty was marked by some glaring absences. Most remarkably, it had no prior mentions of fighting climate change and watered-down language, as it relates to the impacts of Russia’s invasion of Ukraine. Additionally, unusual for a Democratic president, was the traditional support for free trade.
The communique issued following the meeting did not call out China by name. It did call out “nonmarket policies,” which most times involves calling out China’s export-subsidizing and currency-manipulating practices. The G7 finance ministers denounced Russia’s “ongoing barbaric war” in Ukraine and committed to increasing sanctions on Moscow.
Even with all these logistical challenges, there was an overall sense of goodwill at the meeting. It was a far distance from the equally-stark G7 foreign ministers’ meeting in March. U.S. Treasury Secretary Scott Bessent remarked positively on the proceedings, stating, “I don’t think there were any major disagreements, I thought the meeting went great.”
Canadian Finance Minister Francois-Philippe Champagne echoed this sentiment, highlighting that participants found “common ground on the most pressing global issues that we face.” He stressed the need to focus on tariffs as part of a larger effort to promote more growth and stability around the world.
German Finance Minister Lars Klingbeil stressed the importance of resolving existing trade disputes swiftly, stating, “We need to resolve the current trade disputes as quickly as possible.” This sentiment aptly captured the mood amongst the delegates who were treading new waters on contentious issues related to international trade and economic cooperation.
“The atmosphere was warm… We don’t agree on everything, but we talked about everything,” French Finance Minister Eric Lombard noted, reflecting on the collaborative spirit of the discussions.
During the entire meeting, officials from the G7 discussed at length the influence tariffs have started to have on the overall landscape of global trade. The absence of strong language regarding climate change and free trade raised questions about the G7’s unified stance on these critical issues.
Understandably, the final document is light on specificity. Such uncertainty might seem like a sign that the G7 is refocusing its priorities to better match a fast-changing global environment. Yet, member countries have to navigate their own tricky domestic politics and realities while managing international relations. Observers are looking closely to see how these insistent realities are addressed in future sessions.