President Trump’s sweeping tariffs will cast a long shadow over the annual gathering of leaders from the world’s seven richest nations, and the normally staid meeting could prove contentious as the U.S. and other countries try to hammer out trade deals.
The annual meetings of the Group of Seven leaders, known as the G7, typically gather to show unity and strike agreements on issues that largely have global support, such as lowering inflation or preventing the next pandemic.
But this year, the summit might get heated as Mr. Trump’s tariffs threaten economic growth in many of the G7 nations and his demand for trade deals favorable to the U.S.
“If there is one theme surrounding these G7 meetings, it is uncertainty,” said Ryan Young, senior economist at the Competitive Enterprise Institute, a free-enterprise think tank.
The Trump administration so far has reached a trade deal in principle with one G7 partner, Britain. It also has a handshake deal with Beijing to ease trade tensions, but China is not part of the G7.
Mr. Trump said his administration is engaged in talks with Japan and the European Union, as well as Canada, which is hosting the G7 summit this year. However, Canada still faces a 25% tariff on many of its exports to the U.S., while the other G7 members all face baseline tariffs of 10% on their exports.
During his April “Liberation Day” announcement, Mr. Trump imposed a blanket tariff of 10% on virtually all of America’s trading partners as well as individualized tariffs — including some as high as 50% — on the certain countries. However, the individualized tariffs are on hold until July 9.
The looming July 9 deadline could make the G7 summit an excellent opportunity for Japan and the European Union to strike trade deals with Mr. Trump.
But Treasury Secretary Scott Bessent told Congress on Wednesday that it is “highly likely” that the administration could extend the 90-day tariff pause and continue “good faith negotiations.”
“An extended tariff pause would give Japan and Europe some breathing room,” Mr. Young said. “If they can wait a few months, there is a good chance the Supreme Court will declare the Liberation Day tariffs unconstitutional anyway. The Trump administration would then likely turn to slower, more limited tariff-raising methods.”
Elaine Dezenski, an economist with the Foundation for Defense of Democracies, said it’s unlikely that Mr. Trump will walk away from the conference without striking a trade deal.
“There may be an opportunity to talk about some of the sticking points around some of the trade deals, but these deals are so complex and the administration has a preference for bilateral engagements that I don’t think it’s going to become a forum for trade negotiations,” she said.
Mr. Trump hasn’t been shy about confronting world leaders. His Oval Office meetings with Ukrainian President Volodymyr Zelenskyy, South African President Cyril Ramaphosa and Canadian Prime Minister Mark Carney turned into fiery showdowns. Of the three leaders, only Mr. Carney leads a G7 nation.
“If you look at some of the Oval Office confrontations, whether it was the Zelenskyy meeting or the Ramaphosa visit, Trump didn’t really shy away from using his pulpit to send messages to partners,” Ms. Dezenski said. “It means you know that this administration isn’t pulling any punches or even go on the offensive if they feel like they need to.”
About Author
This post was originally published on this site
