Germany's Merkel: US support withdrawal from G7 communique is sobering

Joshua Gibson FXStreet

German Chancellor Angela Merkel is out with statements expressing her disappointment in US President Trump's decision to withdraw the US' support of the G7 communique, a signed document that ratifies and clarifies the discussions and agreements to come out of the regular summit of the Group of Seven. Trump withdrew the US' support for the final communique after Trump fever-Tweeted a lash-out against Canadian Prime Minister Justin Trudeau.

Key highlights

Germany stands by G7 communique and its contents.

US decision to withdraw support via Twitter is sobering and a bit depressing.

G7 summit does not mean the end of trans-Atlantic partnerships.

Europe must now focus on strengthening ties with Canada and Japan.

The EU is still prepared with counter-tariffs against the US.

Merkal and the EU will also not allow themselves to be 'ripped off' repeatedly, will also act if forced.

Tariff-free G7 area is the ideal outcome, but negotiations must also include public tenders, and such trade talks could take a while.

"Could imagine Russia re-joining G7" at some point, but must first see progress in Ukrainian peace plan.

Author

Joshua Gibson

FXStreet

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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