G-7 finance talks end in show of unity despite tariff turmoil

BANFF, Alberta - Group of 7 (G-7) finance ministers wrapped up talks in western Canada on May 22 with a show of unity, saying the economic policy uncertainty that has swept the globe was easing and vowing further progress towards stability.

US President Donald Trump’s

wide-ranging tariffs

have caused global economic turbulence, and this week’s meeting was seen as a test of whether the G-7 group of advanced economies could overcome tensions since Mr Trump’s return to office.

Leaders at the talks, which included central bank governors, conceded the discussions faced challenges, including continuing disagreement over tariffs.

But in a final communique, the G7 – comprising Britain, Canada, France, Germany, Italy, Japan and the United States – said: “We acknowledge that economic policy uncertainty has declined from its peak, and we will work together to achieve further progress.”

The meeting’s host, Canadian Finance Minister Francois-Philippe Champagne, characterised the talks as “constructive and productive” and said that there was a need “to reduce uncertainty in order to increase growth.”

US Treasury Secretary Scott Bessent, who attended the talks at Banff National Park in the Canadian Rocky Mountains, faced consistent pushback on Mr Trump’s tariffs, which many fear will drag down global economic growth.

“Obviously, tariffs are on all of our minds,” Bank of Canada Governor Tiff Macklem told reporters at a closing press conference.

“The communique highlights that we were pleased to see that uncertainty has come down, but we clearly have more work to do,” he added.

Mr Bessent told AFP as he left the summit: “I don’t think there were any major disagreements, I thought the meeting went great.”

German Finance Minister Lars Klingbeil told reporters on May 22 it was crucial to “resolve the current trade disputes as quickly as possible,” as tariffs had placed “a heavy burden on the global economy.”

“Our hand is extended,” Mr Klingbeil added.

French Finance Minister Eric Lombard told AFP: “The atmosphere was warm. We spoke as friends and allies.”

“We don’t agree on everything, but we talked about everything,” he said.

Mr Joshua Meltzer, a senior fellow at the Brookings Institution, called the joint communique “a very positive sign,” setting the tone for a leaders summit in June that Mr Trump is set to attend.

Mr Meltzer told AFP that while it is unclear if peak uncertainty has passed, this is “a signal that (Mr Bessent is) wanting to send to the globe and to markets.”

‘Maximize pressure’

Ukrainian Finance Minister Sergii Marchenko attended the talks and urged the G-7 to maintain pressure on Russia.

In their communique, G-7 finance leaders agreed Russia could face further sanctions if it resisted a push towards a ceasefire.

“If such a ceasefire is not agreed, we will continue to explore all possible options, including options to maximise pressure such as further ramping up sanctions,” the communique said.

Diplomatic efforts to end the conflict have accelerated in recent weeks, with Russian and Ukrainian officials holding their

first face-to-face talks

in more than three years last week in Istanbul.

But the Kremlin said on May 22 that new peace talks with Ukraine had “yet to be agreed,” disputing reports the two nations would soon hold negotiations at the Vatican.

Mr Trump

spoke with Russian counterpart Vladimir Putin

on May 19 in a call aimed at ending the “bloodbath”, but neither his contact nor the earlier talks in Istanbul resulted in Russia offering any concessions.

France’s Mr Lombard welcomed “clear progress” on support for Ukraine.

While Mr Trump’s return has rattled the G-7, German finance minister Mr Klingbeil told public broadcaster ARD that “there are always conflicting signals.”

While there may be US statements that cast doubt on the extent of support towards Ukraine, “in the end, the United States has always been on Ukraine’s side,” he said.

In an additional step on Ukraine, the G-7 communique condemned “Russia’s continued brutal war” and said any entity that supported Russia during the conflict would be barred from Ukrainian reconstruction contracts.

“We agree to work together with Ukraine to ensure that no countries or entities, or entities from those countries that financed or supplied the Russian war machine will be eligible to profit from Ukraine’s reconstruction,” it said. AFP