G7 Finance Leaders Seek Unity Amid U.S. Policy Tensions at Banff Summit

 Banff, Canada |  — Finance ministers and central bank governors from the Group of Seven (G7) industrialized democracies are convening this week in Banff, Alberta, with hopes of preserving policy alignment on key global economic issues. However, deepening divisions with the United States—driven by the Trump administration’s assertive trade agenda—may pose a significant challenge to consensus.

While the United States under President Donald Trump continues to prioritize unilateral economic objectives, the remaining six G7 members—Canada, France, Germany, Italy, Japan, and the United Kingdom—are aiming to prevent a further erosion of the group’s cohesion. Officials and experts in international economic diplomacy note that shared goals on non-tariff issues could provide a foundation for unity, even as tensions over trade, climate policy, and global taxation persist.

Sources familiar with U.S. positions suggest that any joint statement will need to closely reflect the Trump administration’s priorities. “We’re not inclined to issue a communique for its own sake,” one U.S. official said, speaking on condition of anonymity.

Tariff Disputes and Fractured Trade Ties

The summit is being attended by U.S. Treasury Secretary Scott Bessent, whose presence places ongoing trade tensions at the forefront. Several G7 nations face the prospect of a dramatic escalation in U.S. tariffs, with rates potentially doubling to 20% or higher by early July. The United Kingdom has negotiated a limited trade agreement that retains 10% tariffs on many exports, while host nation Canada continues to grapple with a separate 25% U.S. duty.

“There’s little expectation that this meeting will produce any major trade breakthroughs or unveil bilateral deals,” said Charles Lichfield, deputy director of the Atlantic Council’s GeoEconomics Center. “Other G7 members will likely use the occasion to underscore the challenges of meeting Washington’s calls for pressure on China, while navigating the pressure of U.S. trade restrictions themselves.”

Despite these tensions, Bessent is expected to advocate for measures addressing economic imbalances and state-driven models, particularly those used by China. “The G7 must work together to protect our workers and firms from China’s unfair practices,” a Treasury spokesperson said.

Bessent, a former hedge fund executive, has frequently criticized Beijing’s overcapacity and market-distorting subsidies. Seen by some as a moderating voice within the Trump administration, Bessent may face pressure from his G7 counterparts to temper Washington’s trade rhetoric and seek broader cooperation.

Toward a Unified Statement — With Caveats

Despite the friction, host country Canada is keen to produce a joint communique from the finance meeting, which would serve as a prelude to the G7 Leaders’ Summit scheduled for June in Kananaskis. A draft statement has already been circulated, sources say, with Canadian officials striving to demonstrate solidarity on key international concerns.

Among these is support for Ukraine amid its ongoing defense against Russia’s invasion. Ukrainian Finance Minister Serhii Marchenko is attending the summit, and G7 leaders are expected to endorse a unified—though likely non-specific—statement of support. This comes amid preparations by the European Union for a new package of sanctions against Moscow.

The tone and scope of the statement may be affected by President Trump’s announcement Monday that ceasefire negotiations between Russia and Ukraine would begin immediately. Secretary Bessent is reportedly keeping all options open regarding future sanctions, emphasizing that any U.S. action will depend on developments in the broader peace process.

Areas of Agreement and Remaining Friction

G7 officials anticipate consensus on other multilateral priorities, including continued support for the International Monetary Fund and World Bank, enhanced efforts to combat money laundering, and a push for greater reliance on private-sector investment to stimulate growth.

However, climate policy is expected to remain a contentious topic. With President Trump’s administration distancing itself from previous U.S. commitments to green energy and environmental initiatives, references to climate change in the communique are likely to be diluted or heavily negotiated.

Another challenge lies in addressing the global economic uncertainty and investment hesitancy triggered by U.S. trade policies—without directly attributing them to Washington’s actions.

“My crystal ball is so murky now, I can’t really see the future very well,” said Suzanne Clark, CEO of the U.S. Chamber of Commerce, speaking at a business conference alongside G7 counterparts in Ottawa. Her comments reflect the broader ambiguity facing global markets as the G7 attempts to navigate internal divisions while projecting unity.

As finance leaders continue discussions in Banff, the delicate balance between shared interests and national agendas will define both the tone and substance of the summit—and potentially shape the direction of global economic cooperation in the months ahead.