G7 Finance Chiefs Present United Front on Global Trade Imbalances, Sidestep Discord Over U.S. Tariffs

Ottawa, May 23, 2025 Finance ministers and central bank governors from the Group of Seven (G7) advanced economies concluded three days of talks in Canada on Thursday, striking a unified tone on the need to address global economic imbalances—widely interpreted as a rebuke of China’s trade practices—even as deep divisions over U.S. tariffs and the war in Ukraine tempered the scope of the final communiqué.

Despite earlier skepticism over whether the group could agree on a joint statement amid discord over Washington’s tariff policies and its softening stance on Russia’s invasion of Ukraine, ministers ultimately endorsed a consensus document. However, the communiqué conspicuously omitted past commitments to combating climate change, refrained from explicitly defending free trade, and softened previous language condemning Russia’s actions in Ukraine.

“We found common ground on the most pressing global issues that we face,” said Canadian Finance Minister François-Philippe Champagne, host of this year’s meeting. “It sends a clear signal to the world that the G7 is united in purpose and in action.”

While the statement made no direct mention of China, it reaffirmed the bloc’s intent to monitor “nonmarket policies and practices” that contribute to trade distortions—language widely understood to refer to Chinese export subsidies, currency interventions, and state-directed industrial policies.

U.S. Treasury Secretary Scott Bessent played down intra-group tensions, telling AFP, “I don’t think there were any major disagreements. I thought the meeting went great.”

The mood appeared markedly more constructive than at the G7 foreign ministers’ meeting in March, which was overshadowed by former President Donald Trump’s renewed threats of tariffs on Canadian exports and his controversial remark suggesting Canada could become “America’s 51st state.”

Germany’s Finance Minister Lars Klingbeil stressed the urgency of resolving trade frictions that have weighed on global economic growth. “Tariffs are a heavy burden on the global economy. Our hand is extended—we want solutions,” he said.

France’s Finance Minister Éric Lombard described the discussions as “frank and productive,” noting: “We don’t agree on everything, but we talked about everything.”

Significantly, the communiqué did not mention the controversial U.S. tariffs that have disrupted international supply chains and drawn criticism from allies. Champagne acknowledged the omission but insisted the issue was robustly discussed. “We’re not skating around the issue,” he said. “Obviously tariffs are integral to the global growth and stability agenda.”

Canada, in particular, is lobbying for the removal of Trump-era tariffs on steel, aluminum, and other key exports—a central issue ahead of next month’s G7 Leaders’ Summit.

On Ukraine, the G7 ministers condemned Russia’s ongoing aggression but adopted more restrained language than previous statements, referring to the conflict as a “continued brutal war.” This represents a notable departure from the bloc’s October 2024 communiqué, which labeled Russia’s invasion as “illegal, unjustifiable, and unprovoked.”

The revision reflects shifting U.S. policy under President Trump, who has curtailed military support for Ukraine and signaled openness to direct negotiations with Moscow. While Kyiv and Moscow held rare face-to-face talks last week in Istanbul—the first in over three years—hopes for a breakthrough remain uncertain. The Kremlin on Thursday denied reports of imminent Vatican-hosted negotiations.

Looking ahead, the outcomes of this finance ministers' meeting are expected to shape discussions at the G7 Leaders' Summit, scheduled for June 15–17 in Kananaskis, Alberta. The White House has confirmed President Trump’s attendance.