G7 finance chiefs show unity despite tensions over Trump’s tariffs
The finance chiefs of the Group of Seven democracies on Thursday showcased their unity in dealing with common challenges ranging from economic imbalances to the future of Ukraine, despite global trade tensions following the imposition of a barrage of tariffs by U.S. President Donald Trump.
Around a month before it hosts a summit of the G7 leaders, Canada, the country perhaps most irked by Trump’s confrontational trade policies, tried its best to prevent a weakening of the group’s decades-old cooperation, downplaying differences including over how to push Russia to end its invasion of Ukraine.
“In the face of multiple complex global challenges, we are committed to pursuing our shared policy objectives,” the G7 finance ministers and central bank governors said in a joint statement released after two days of discussions in the Canadian Rocky Mountain resort town of Banff.
The second day of three-day meeting between Group of Seven member states’ finance ministers and central bank governors is held in Banff, Canada, on May 21, 2025. (Kyodo) ==Kyodo
While refraining from any mention of Trump’s tariff regime, the finance chiefs of the group, comprising Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union, agreed that they can leverage their “strong economic relationships” to tackle issues such as “excessive imbalances” in the global economy.
Bank of Japan chief Kazuo Ueda said, nevertheless, that he and many of his G7 counterparts shared their concerns about the potential effects of Trump’s sweeping tariffs and viewed the economic uncertainty stemming from the measures as continuing.
Ueda said at a press conference that the situation had not changed, despite recent preliminary trade deals struck by the United States with Britain and China.
At last year’s G7 summit in Italy, the leaders reaffirmed the group’s “commitment to the rules-based, free and fair, equitable, and transparent multilateral trading system.” Their finance officials also made similar pledges prior to Trump’s return to the White House.
But the Banff communique omitted the group’s oft-repeated promotion of free trade, apparently due to the Trump administration’s economic agenda.
Asked the reason for the omission, Canadian Finance Minister Francois-Philippe Champagne stressed there is “a lot that we can achieve also together.”
Speaking at a closing press conference, Champagne said he believes the communique “sends a very clear signal to the world” that the G7 is “united in purpose and in action.”
The White House announced Thursday that Trump will attend the G7 summit in nearby Kananaskis from June 15 to 17.
In addition to gauging the health of the global economy, the finance chiefs discussed China’s industrial overcapacity and nonmarket practices, according to G7 officials.
Without naming China, the communique said the G7 thinks it is necessary to have a common understanding of how nonmarket practices, such as massive government subsidies, aggravate imbalances, contribute to overcapacity and affect the economic security of other countries.
“We agree on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency,” it said.
Other issues discussed included the increase in low-value international shipments, coming particularly from Chinese e-commerce companies selling cheaper products that are still duty-free in many countries.
They said such shipments were addressed not just in terms of tax collection but also in the context of customs security, given that they are increasingly used to smuggle illegal substances.
In their first communique since Trump’s nonconsecutive second term started in January, the finance ministers and central bank governors, including U.S. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, also condemned Russia’s continued “brutal” war in Ukraine, without referring to it as “illegal.”
“The G7 remains committed to unwavering support for Ukraine in defending its territorial integrity and right to exist, and its freedom, sovereignty and independence toward a just and durable peace,” the document said.
The countries said they will consider “options to maximize pressure such as further ramping up sanctions” if a cease-fire is not agreed between Moscow and Kyiv.
Ukrainian Finance Minister Sergii Marchenko was invited to join part of the G7 gathering in person, at a time when there has been little progress in talks toward ending the war.
Japanese Finance Minister Katsunobu Kato (L) and Bank of Japan Governor Kazuo Ueda hold a press conference after the end of the Group of Seven finance chiefs’ meeting in Banff, Canada, on May 22, 2025. (Kyodo) ==Kyodo
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