G7 Summit: Navigating Unity Amid Tariffs and Trade Tensions

Finance leaders from the Group of Seven industrialized democracies are gathering in Canada this week, with unity on non-tariff issues posing a significant challenge. The Trump administration's focus on U.S. interests complicates consensus, particularly as tensions rise over imposed tariffs, climate change reversals, and global tax cooperation.

At the forefront of these discussions, set against the backdrop of the Canadian Rockies, is the effort to find common ground despite sharp disagreements over trade policies. Japan, Germany, France, and Italy confront potential tariff hikes, while Britain and Canada continue to grapple with existing duties. Economic diplomacy expert Charles Lichfield emphasized the limited expectations for special trade regimes favoring G7 partners.

Amid calls for addressing economic imbalances and counteracting China's economic model, U.S. Treasury Secretary Scott Bessent is seen as a moderating influence on Trump's trade agenda. The summit's outcome will likely reflect a carefully crafted communiqué to maintain alliance solidarity, spotlighting support for Ukraine and the defense of international financial institutions, while skirting contentious climate change language.

(With inputs from agencies.)