G7 finance ministers and central bank governors are meeting in Alberta, Canada, to discuss global economic conditions. Discussions will include the war in Ukraine, financial crime, and non-market practices. Ukrainian Finance Minister Sergii Marchenko will address reporters on Tuesday.
The G7, consisting of Britain, Canada, France, Germany, Italy, Japan, and the United States, faces internal tensions due to Trump's policies. Trump has reached out to Russia and imposed tariffs on allies and competitors. Economists warn these tariffs could fuel inflation and hinder growth.
While Trump's tariffs are not formally on the agenda, trade and tariffs will be embedded in discussions on the global economy. A US Treasury spokesperson said Secretary Bessent aims to focus on addressing imbalances and non-market practices. G7 members may find consensus on China's excess industrial capacity.
A Japanese official plans to meet with Bessent to discuss foreign exchange. A French finance ministry official stated the meeting will test the G7's ability to agree on a final statement. Germany's Finance Minister Lars Klingbeil warned that trade disputes with the US should be resolved quickly.
Trump has imposed a 10 percent tariff on most US trading partners, threatening higher rates on economies including the EU. He has also imposed tariffs on steel and aluminum imports. Ananya Kumar of the Atlantic Council suggests a successful outcome would be the US engaging and negotiating a trade deal.
The issue of sanctions on Russia remains uncertain. Trump stated Russia and Ukraine would start peace talks after speaking with Vladimir Putin. A source briefed on US participation said all options remain regarding sanctions, but these should be aimed at outcomes like the peace process.