G7 members have begun tough discussions in Canada, seeking to restore stability in the face of economic turbulence from US President Donald Trump’s tariffs and to strengthen support for Ukraine.
The gathering of finance ministers and central bank governors from the Group of Seven nations is seen as a test of cohesion among the advanced economies, as Mr Trump’s trade policies threaten to drag down economic growth.
Once broadly aligned, the G7 – comprising the UK, Canada, France, Germany, Italy, Japan and the United States – could struggle for unity amid the upheaval caused by President Trump.
He has spoken often of annexing neighbour Canada, which holds the group’s presidency this year.
But the mood was cordial as leaders came together for a photograph at a welcome ceremony against a mountainous backdrop in Banff, in the western province of Alberta.
US Treasury Secretary Scott Bessent exchanged greetings with Japanese Finance Minister Katsunobu Kato on the podium.
Both sides are expected to meet on currency issues and other topics.
Mr Bessent’s counterparts are seeking common ground and a lowering of temperatures with the US on trade, while sources briefed on American participation said that he is likely to raise issues such as China’s non-market practices and excess industrial capacity.
The G7 is also expected to discuss potential fees on low-value imports from China.
“Let’s go to work,” Canadian Finance Minister Francois-Philippe Champagne declared as leaders headed into meetings, including sessions on the global economy and the war in Ukraine.
He said, at a news conference yesterday, that Ukrainian Finance Minister Sergii Marchenko’s presence in Banff “sends a strong message to the world” that members are recommitting to support the country against Russia’s invasion.
Mr Marchenko told reporters that he would seek to reiterate Ukraine’s position on the need for further pressure on Russia.
Mr Champagne opened a bilateral meeting with French Finance Minister Eric Lombard noting both sides’ “almost perfect alignment” in visions.
“We’re all about restoring stability to trade between the G7 countries, but we’re also talking about growth,” Mr Champagne said.
Mr Lombard, in turn, noted the “quality of dialogue” with Canada, saying “that’s what we need in the world.”
“We’re optimistic about what we can do together,” he added.
Mr Champagne stressed yesterday that “everyone wins” when trade rules are “fair and predictable,” expressing his belief that Canada can serve as a bridge among members in a turbulent time.
On Mr Bessent and the pressures from US trade policy, he told reporters that colleagues are eager to discuss how everyone can work together.
This week, all eyes will be on whether the G7 can find common wording despite their differences.
Read more:
G7 finance leaders gather with Ukraine, tariff concerns at fore
A French official earlier said that although Canada’s presidency hopes to issue a communique, France would not accept “watered down” language.
A source briefed on US participation said that a consensus should align with Trump administration priorities.
