The finance ministers’ meeting sets the tone for the G7 Leaders Summit, scheduled to take place from June 15 to 17 in the nearby mountain resort of Kananaskis, Alberta
Finance ministers and central bank governors from the Group of Seven (G7) countries have reached a rare consensus on countering what they described as global “economic imbalances” – a pointed, if indirect, reference to China’s state-driven trade practices – following three days of discussions in Canada. Despite initial concerns about internal divisions, especially over US tariffs and the Ukraine conflict, the group succeeded in issuing a joint communique and projecting a united front ahead of next month’s leaders’ summit.
While the final statement avoided naming China explicitly, G7 officials confirmed the target was clear. The reference to “nonmarket policies and practices” aligns with long-standing Western criticism of China’s export subsidies, currency management, and state-owned enterprise dominance – tools that Beijing’s critics say distort global trade.
“We found common ground on the most pressing global issues we face,” said Canada’s finance minister François-Philippe Champagne during the closing press conference on Thursday. “This sends a strong signal that the G7 is united in purpose and in action, even in turbulent times.”
Omission and Realignment
In a noticeable departure from previous years, the final communique made no mention of climate finance or concrete climate targets, sidestepping a key issue that had once been central to G7 economic discussions. The usual language on defending free trade was also dropped, reflecting the impact of shifting political winds in Washington and beyond.
Instead, the statement focused on trade imbalances, supply chain resilience, and global economic stability – with repeated references to “unfair practices” and “distortive policies” that sources confirmed were aimed at China. US Treasury Secretary Scott Bessent, attending his first G7 finance meeting since taking office, downplayed divisions. “I don’t think there were any major disagreements. I thought the meeting went great,” Bessent told reporters, describing the sessions as “productive and forward-looking.”
Tariffs and Trump’s Trade Agenda
Notably absent from the final document was any reference to the controversial tariffs recently imposed by US President Donald Trump, which have rattled global markets and strained ties with allies. Trump has reintroduced 25% duties on a range of imports, including European and Canadian steel and aluminium, reigniting trade disputes dating back to his first term.
German finance minister Lars Klingbeil was candid, saying it was vital to resolve these disputes quickly. “Tariffs place a heavy burden on the global economy. Our hand is extended for dialogue,” he said.
France’s finance minister Eric Lombard added that while disagreements remain, the mood in the room was constructive. “The atmosphere was warm. We don’t agree on everything, but we talked about everything.”
Champagne also addressed the omission of tariffs from the statement. “Just because it’s not in the communique doesn’t mean we avoided the subject,” he said. “We had frank conversations about how tariffs impact stability and growth, especially for open economies like Canada’s.”
Canada has been pushing for a resolution to the renewed US tariffs, particularly as they affect key sectors such as manufacturing and raw materials.
A Calibrated Message on Ukraine
The G7’s language on Russia’s invasion of Ukraine was noticeably more measured than in previous meetings. The group condemned Moscow’s “continued brutal war” and affirmed support for Ukraine, but the description stopped short of calling the war “illegal and unprovoked” – a phrase used in earlier G7 communiques before Trump’s return to office.
Diplomatic sources say the softening reflects Trump’s own shifting rhetoric, as he attempts to balance pressure on Russia with renewed calls for peace talks. Trump has previously suggested Ukraine shares responsibility for the conflict and has favoured back-channel negotiations with the Kremlin.
The Kremlin, however, dismissed reports of imminent peace talks, saying that no new dialogue with Kyiv had been agreed. Meanwhile, efforts to establish Vatican-hosted negotiations remain in limbo.
Despite this ambiguity, the G7 reiterated its readiness to escalate sanctions on Russia should ceasefire efforts fail. “All options remain on the table,” the communique stated.
Eyes on the June Summit
The finance ministers’ meeting sets the tone for the G7 Leaders Summit, scheduled to take place from June 15 to 17 in the nearby mountain resort of Kananaskis, Alberta. President Trump has confirmed his attendance, alongside leaders from the UK, Germany, France, Italy, Japan, and host nation Canada.
The summit is expected to delve deeper into global trade reform, the Ukraine crisis, and climate security. However, with growing ideological divides and Trump’s “America First” agenda back in full swing, observers expect a complex diplomatic balancing act.
The Chinese embassy in Ottawa declined to comment on the G7 statement, but Beijing has previously criticised Western blocs for what it sees as ideological confrontation. Nonetheless, the G7’s carefully worded unity suggests a recalibrated strategy – maintaining pressure on China’s economic model without blowing apart internal consensus. As one EU official put it privately, “It’s diplomacy by subtraction. Say less, but mean more.”
