Tariffs, Ukraine War Dominate G7 Finance Talks in Canada

Finance leaders from the Group of Seven nations (G7) began meetings Tuesday in Canada, facing growing uncertainty over the war in Ukraine and the economic fallout from US President Donald Trump’s new trade tariffs.

The talks, running through Thursday in Banff, Alberta, bring together finance ministers and central bank governors from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Ukrainian Finance Minister Serhii Marchenko is also attending.

The meeting comes as Trump, back in the office this year, has shaken the group’s unity by imposing a blanket 10% tariff on most US trading partners and signaling a hands-off approach to the Ukraine war. 

“This is an unusual G7,” Ananya Kumar, deputy director at the Atlantic Council, told AFP. “The economic impact of Trump’s tariffs has cast a pall. It’s the elephant in the room.”

On Monday, Trump said Ukraine and Russia would begin peace talks “immediately” following his conversation with Russian President Vladimir Putin.

Although the exact content of the Trump-Putin agreement was not disclosed, the FT noted that Trump’s public comments pointed to a possible withdrawal of the US from its role as a mediator in the war.

A source briefed on US participation in the G7 meeting in Banff, Alberta, said the White House is not inclined to “do a communique just for the sake of doing a communique.” The source said a consensus would have to align with Trump administration priorities, AFP reported.

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US Treasury Secretary Scott Bessent is expected to focus on trade imbalances and seek common ground on issues such as China’s industrial policies. Analysts say his role could be key in easing tensions, with hopes that progress on trade could unlock cooperation on Ukraine and other global issues.

Canadian Finance Minister Francois-Philippe Champagne will co-chair sessions on the global economy, financial crime, AI, and support for Ukraine.

While no major agreements are expected, officials say the Banff meeting is a chance to reset coordination among top economies amid growing divisions.