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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."

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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.

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