|

G7 leaders divided on Trump tariffs ahead of key group summit - Reuters

As reported by Reuters, G7 leaders are increasingly divided over trade and tariffs, with key leaders from several nations appearing to be unwilling to stand up to the US trade policies while others are warning of increasing blowback.

Key quotes

"In a bid to rebuild America’s industry, Trump has imposed hefty tariffs on steel and aluminum imports, including those from key G7 allies like Canada, Japan and the European Union. He has threatened to use national security laws to do the same for foreign car imports and has walked back on environmental agreements and an international deal to prevent Iran from building a nuclear bomb.

French President Emmanuel Macron, who has invested in a warm personal relationship with Trump, said that the other G7 nations should remain “polite” and productive but warned that “no leader is forever”, a sign that Europe would not surrender meekly to the U.S. president. “Maybe the American president doesn’t care about being isolated today, but we don’t mind being six, if needs be,” Macron told reporters. “Because these six represent values, represent an economic market, and more than anything, represent a real force at the international level today,” he said.

Canadian Prime Minister Justin Trudeau predicted “robust discussions” on trade but other G7 members like Japan and Italy seemed less likely to want to challenge the U.S. president. Trump will come face-to-face at the gathering in Charlevoix, Quebec, with world leaders whose views do not chime with his on a range of issues from trade to the environment as well as Iran and the construction of a new U.S. embassy in Jerusalem. Trump signaled that he was in no mood to compromise as he met Japanese Prime Minister Shinzo Abe, who has tried to cultivate a friendly relationship with the American president."

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Editor's Picks

GBP/USD trims losses, approaches 1.3500

GBP/USD adds to the multi-day negative streak, although it has managed to bounce off earlier four-week lows near 1.3470 on Wednesday. Meanwhile, Cable’s deep correction comes despite the tepid performance in the Greenback and the persistent geopolitical concerns.

EUR/USD slips back toward 1.1580 on USD recovery

EUR/USD comes under some pressure and revisits the 1.1580 region as the NA session draws to a close on Wednesday. That said, spot adds to Tuesday’s bearish performance while the Greenback is slowly gathering steam and leaving behind earlier lows.

Gold keeps the recovery in place; focus is back to $4,400

Gold continues to regain ground lost and sets its target on the $4,400 mark per troy ounce on Wednesday. The yellow metal’s rebound comes amid modest losses in the US Dollar, steady geopolitical uncertainty and mixed US Treasury yields.

Bitcoin and Gold Outlook: BTC comes under pressure, XAU rebounds amid US-Iran strikes
Bitcoin (BTC) remains neutral-to-bullish, edging lower near $77,000 support on Wednesday. The largest cryptocurrency by market capitalization has been unable to sustain a recovery after being rejected around $81,500 last Friday. Meanwhile, its downside appears broadly protected due to an established moving average cluster.
BoC recap: Risks are shifting as Oil prices and US trade actions complicate outlook
The Bank of Canada (BoC) left its overnight interest rate unchanged at 2.25% on Wednesday, as widely anticipated, but delivered a more cautious message as inflation risks increased and the recovery became harder to assess.
Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.