In a surprising turn of diplomacy, the world’s leading economic powers from the G7 coalition have set aside their differences over US tariffs and trade disputes, instead focusing on addressing broader global “economic imbalances.” After two intense days of talks nestled in the Canadian Rockies, these top financial officials reached a consensus that signals a shift in their approach to international economic policy.
The final communiqué, released Thursday, reveals a notable departure from previous gatherings. The leaders softened their usual staunch advocacy for free trade and scaled back references to Russia’s ongoing conflict in Ukraine compared to last year’s statements. Nevertheless, they maintained a firm stance on Russia’s potential future sanctions, indicating that if a ceasefire is not achieved, further measures could be imminent.
While the document stops short of explicitly naming China, it hints at concerns over what are typically termed “nonmarket policies” a reference often directed at China’s export subsidies and currency manipulations. These practices, critics argue, distort fair trade and give China an unfair advantage on the global stage. Treasury Secretary Scott Bessent’s influence appears evident, steering the communiqué toward the tougher stance that the previous U.S. administration under Trump had championed.
This gathering, which included the United States, Canada, the United Kingdom, Japan, Germany, France, and Italy, seemed markedly more harmonious than the earlier meeting of G7 foreign ministers in March. That previous assembly was marred by tensions, especially as then-President Donald Trump threatened imposing hefty tariffs on Canada, even suggesting the nation could become the “51st state.”
Canada, holding the G7 presidency this year, aimed to lay the groundwork for the upcoming leaders’ summit scheduled for June 15 to 17 in Kananaskis. The White House confirmed Trump’s attendance, signaling a possible return to more diplomatic engagement at the summit.
“Throughout our G7 presidency, the tone of the discussions has become progressively more constructive,” said Tiff Macklem, governor of the Bank of Canada, at the close of the summit.
However, this newfound unity appears to have come at a cost. Notably absent from the communiqué were references to climate change and international tax cooperation—issues that previously enjoyed consensus but have since been sidelined, particularly amid the Trump administration’s dismissive stance on these topics.
As the world watches, the G7’s ability to find common ground on economic policies amidst a landscape of global tensions hints at a cautious hope for collaboration, even as deeper divisions and unresolved conflicts continue to challenge international cooperation.
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