G-7 leaders discuss trade, seek tariff reductions

G-7 leaders seek trade breakthroughs with Trump, aiming to ease tensions over tariffs and discuss military spending concessions.

World leaders are engaging in trade discussions with President Trump during the G-7 summit in Kananaskis, Canada, aiming to address tariff tensions.

Countries including Japan, the EU, Canada, and Mexico are seeking concessions in exchange for reduced tariffs, with talks focused on military spending, action against China, and the reduction of trade barriers.

President Trump noted ongoing discussions with Canadian Prime Minister Mark Carney regarding trade agreements. Despite plans to finalise numerous deals by July 9, only a limited pact with the UK has been reached, while issues surrounding auto, steel, and aluminum tariffs persist.

Steel and aluminium

Canada is advocating for the lifting of tariffs due to its status as a major supplier of steel and aluminum to the U.S. Canadian trade officials, alongside Carney, have engaged directly with Trump’s team to advance negotiations.

Carney highlighted an increase in Canada’s military budget, aligning with NATO spending targets. He aims to rejuvenate trade talks prior to the 2026 review of the USMCA.

Although Mexico is not a G-7 member, President Claudia Sheinbaum was invited. Mexican officials are pushing to eliminate tariffs on steel and aluminum, arguing that trade surplus justifies exemptions.

Discussions regarding auto tariffs remain challenging, particularly with Japan, which relies heavily on vehicle exports to the U.S. Japan is keen on securing similar concessions as those granted to the UK.