 nations have begun a high-level meeting in Alberta, Canada, with the ongoing war in Ukraine and escalating trade tensions sparked by U.S. President Donald Trump’s recent tariff moves topping the agenda.){kind=link}
Finance ministers and central bank governors from the Group of Seven (G7) nations have begun a high-level meeting in Alberta, Canada, with the ongoing war in Ukraine and escalating trade tensions sparked by U.S. President Donald Trump’s recent tariff moves topping the agenda.
The three-day summit, which started Tuesday, will see participants address global economic challenges and seek a unified stance on the Ukraine crisis.
Other priorities include tackling non-market trade practices and growing concerns over economic imbalances.
Ukrainian Finance Minister Sergii Marchenko is also attending the discussions, held in the scenic town of Banff. His presence underscores Ukraine’s continued importance in G7 deliberations following Russia’s 2022 invasion.
However, the G7’s once-solid consensus on Ukraine has faced recent strains, particularly since Trump’s return to power.
Trump has reintroduced tariffs on allies and adversaries alike and recently claimed that peace talks between Russia and Ukraine would begin after a conversation he had with Russian President Vladimir Putin.
A U.S. official familiar with Washington’s approach at the Banff meeting noted there was little interest in issuing a joint statement unless it reflected Trump’s policy priorities.
Canadian Prime Minister Mark Carney has extended an invitation to Ukrainian President Volodymyr Zelensky to attend the full G7 summit in June.
In the meantime, Marchenko is scheduled to brief the media during the finance ministers’ meeting.
The U.S. Treasury, represented by Secretary Scott Bessent, aims to refocus the group’s attention on fundamental issues, such as unfair trade practices and industrial overcapacity in non-G7 economies—particularly targeting China’s global market influence.
One source close to the talks highlighted G7 frustrations with China’s industrial output flooding their markets, emphasizing that this topic would be thoroughly discussed.
While the G7 continues to navigate shared policy concerns including trade, security, and climate change, experts warn that internal disagreements—especially over Trump’s economic measures—could overshadow the proceedings.
Trump’s Tariffs: A Lingering Challenge
“This is not a typical G7 meeting,” said Ananya Kumar of the Atlantic Council. While such meetings usually focus on policy coordination, Trump’s decision to reimpose sweeping tariffs has disrupted that dynamic.
In recent months, the Trump administration introduced a 10 percent tariff on a broad range of imports, including steel, aluminum, and automobiles. These actions have strained relations with key trading partners such as the European Union and Canada, raising uncertainty around previously negotiated trade deals.
The International Monetary Fund recently revised its global growth projections downward, citing the impact of U.S. tariffs on trade-dependent economies, including Canada.
“It’s become the elephant in the room,” Kumar said. “There’s hope the U.S. will come to the table to negotiate, but nothing is guaranteed.”
While new trade agreements are unlikely to be announced during this week’s talks, officials suggest that progress has been made in recent negotiations. The Banff gathering is expected to be another opportunity to seek common ground.
Observers will be watching Treasury Secretary Bessent closely. Known for his role in easing previous trade tensions with China, he is seen as a stabilizing force within the U.S. delegation.
“Bessent has a reputation as the adult in the room,” said Carl Weinberg, chief economist at High Frequency Economics. “But he’s still working under pressure from the Trump administration to push their agenda.”
A successful outcome on trade could lay the groundwork for progress on other pressing matters, Kumar added, including reinforcing the G7’s support for Ukraine.
Canada’s Finance Minister, Francois-Philippe Champagne, will lead sessions focused on the global economy, resilience, and security, with discussions also covering financial crime and artificial intelligence.