G7 Meets In Canada Amid Ukraine War, Trade Tensions

Finance leaders from the world’s most advanced economies have arrived in Alberta, Canada, for a high-level G7 summit beginning Tuesday, where geopolitical unrest and economic disruption are expected to dominate discussions. Chief among the concerns is the protracted conflict in Ukraine, as well as renewed tensions stemming from the trade policies of U.S. President Donald Trump.

The gathering, which runs through Thursday, brings together finance ministers and central bank governors from the G7 member states—Canada, the United States, the United Kingdom, France, Germany, Italy, and Japan. Ukrainian Finance Minister Sergii Marchenko is also expected to join the talks, highlighting the central focus on Ukraine’s ongoing war effort following Russia’s 2022 invasion.

Among the items on the agenda are economic recovery strategies, the implications of trade imbalances, and how to address state-driven economic interventions—sometimes referred to as non-market practices. The group is also expected to deliberate on how to reestablish cohesion among G7 nations, which has frayed since President Trump’s return to office.

The summit takes place amid growing divergence within the G7 bloc. While once largely aligned in their approach to Ukraine and global trade, the current geopolitical climate has exposed deepening fractures. Trump’s recent overtures to Moscow, alongside the reimposition of sweeping tariffs affecting both rivals and long-standing allies, have raised questions about the future of transatlantic cooperation.

In a statement that stirred both hope and skepticism, Trump claimed on Monday that peace negotiations between Russia and Ukraine could soon begin—following what he described as a productive conversation with Russian President Vladimir Putin.

A source briefed on US participation in the G7 meeting in Banff, Alberta, said Washington is not inclined to “do a communique just for the sake of doing a communique.” They said a consensus will have to align with the Trump administration’s priorities.

Canada’s Prime Minister Mark Carney earlier invited Ukrainian President Volodymyr Zelensky to the G7 summit in June, and Ukraine’s Marchenko is due to field media questions on Tuesday.

A US Treasury spokesperson said Treasury Secretary Scott Bessent would look to get the grouping “back to basics and focused on addressing imbalances and non-market practices in both G7 and non-G7 countries.”

The source briefed on US participation noted it was unacceptable from the G7’s perspective that countries would allow China’s excess industrial capacity to flood their domestic sectors, adding that this would be on the agenda.

While the grouping discusses policies and solutions to issues like trade, security, and climate change, analysts warn of unpredictability as leaders deal with internal tensions.

“This is an unusual G7,” said Ananya Kumar, a deputy director at Washington-based think tank, the Atlantic Council.

While talks often center on major policy priorities across members and guests, such as sanctions on Russia, the economic impact of Trump’s tariffs has cast a pall, she told AFP.

In recent months, Trump has slapped a blanket 10 percent tariff on most US trading partners, threatening higher rates on economies including the European Union.

He also imposed tariffs on imports of steel, aluminum and autos, raising the temperature with G7 countries. The implementation of a recent pact with Britain remains clouded by uncertainty.

Last month, the International Monetary Fund slashed its global growth forecast over the tariffs’ effects, with top US partners like Canada to be negatively hit.

“It’s an elephant in the room,” Kumar said. “I think a possible metric for success is that the US wants to engage and negotiate a trade deal with these countries.”

While no major trade deals are expected to emerge from this week’s G7 summit in Banff, insiders indicate that the meetings are nonetheless progressing. Officials familiar with the talks say the gathering presents an opportunity to build consensus and continue advancing negotiations behind the scenes.

Attention is likely to focus on Bessent, a key figure credited with easing the intensity of the U.S.-China tariff conflict. His role as a stabilizing force has not gone unnoticed.

“He’s often regarded as the voice of reason when tensions escalate,” noted Carl Weinberg, Chief Economist at High Frequency Economics. However, Weinberg added that Bessent remains under significant pressure to align outcomes with the Trump administration’s trade priorities.

The ability to move discussions forward on trade could create momentum in other critical areas, according to Atlantic Council analyst Kumar. She anticipates that G7 members will also push for a unified stance on maintaining support for Ukraine amid the ongoing conflict.

Canadian Finance Minister François-Philippe Champagne will lead key discussions on global economic stability, resilience, and the security implications of persistent geopolitical tensions, including the war in Ukraine. Additional sessions will explore pressing topics such as financial crimes and the growing influence of artificial intelligence on international finance and governance.

Africa Today News, New York