Finance leaders from the Group of Seven (G7) nations gathered for a three-day summit in Banff, Canada, where they reaffirmed their commitment to supporting Ukraine in its resistance against Russia. Despite growing unease over President Donald Trump’s international trade agenda, finance ministers and central bank governors of G7 countries found common ground—especially on the issue of Ukraine and sanctions against Moscow. This was reported by The New York Times.
Unity on Ukraine Amid Trade Tensions
In their joint communiqué, the ministers stated:
“We condemn Russia’s continued brutal war against Ukraine and commend the immense resilience from the Ukrainian people and economy. The G7 remains committed to unwavering support for Ukraine in defending its territorial integrity and right to exist, and its freedom, sovereignty and independence toward a just and durable peace.”
The ministers warned that if a cease-fire is not reached, G7 nations would consider “all possible options” to further increase pressure on Russia, including tightening existing sanctions. They also discussed strengthening the oil price cap—one of the key economic tools aimed at limiting Moscow’s revenues.
U.S. Under Pressure From Allies
Unlike previous years, this time the language regarding Russia was notably softer. Last year, the G7 had described Russia’s actions as an “illegal, unjustifiable, and unprovoked full-scale invasion.”
However, according to The New York Times, this softer tone does not signal weakening resolve but rather reflects a diplomatic balancing act under growing internal pressure, particularly from President Trump’s administration, whose economic nationalism is increasingly unsettling allies.
Disagreements Over Tariffs and Trade
U.S. trade policy remains a major point of contention. President Trump continues to pursue an isolationist approach, imposing tariffs not only on competitors but also on traditional allies. Since taking office, he has introduced a 10% universal tariff on nearly all trading partners and added 25% duties on imported steel, aluminum, and automobiles. In April, he raised tariffs on Chinese goods to a staggering 145%, before reducing them to 30% this month to reopen negotiations with Beijing.
Trump also sparked controversy in April when he proposed cutting economic ties with Canada, the G7 host country, declaring, “We don’t need anything” from America’s northern neighbor. He has repeatedly joked—or threatened—that he wants to annex Canada and make it the 51st U.S. state.
Caution Over Confrontation
Despite concern over Trump’s trade tactics, the G7 communiqué avoided direct criticism. Instead, the ministers emphasized the importance of addressing “economic imbalances” and reducing uncertainty in global trade.
“International organizations signaled at our last meeting that trade and economic policy uncertainty was high and weighing on global growth,” the statement read. “We acknowledge that economic policy uncertainty has declined from its peak, and we will work together to achieve further progress.”
Europe Bears the Cost of Tariffs
According to Valdis Dombrovskis, the European Commissioner for Economy, U.S. tariffs have harmed not only the EU but also the U.S. and the global economy at large:
“From the E.U. side, we still see, as always, tariffs creating negative economic effects for the E.U., for the U.S., for the global economy in general. The U.S. administration is having a somewhat different view or reading of the situation.”
The European Commission’s latest economic forecast predicted GDP growth of just 0.9% in 2025 for the eurozone—down from 1.3% in last fall’s forecast. One of the key reasons cited was the economic uncertainty caused by U.S. tariffs.
U.S. Treasury Secretary Keeps a Low Profile
This summit marked the first international appearance for new U.S. Treasury Secretary Scott Bessent, who previously skipped a G20 meeting in South Africa. Amid Trump’s assertive policy stance, Bessent adopted a cautious approach: he refrained from making public statements and did not hold a traditional press conference.
“I had a very productive day,” Bessent said on Wednesday evening as he got into a car en route to a dinner with his G7 counterparts atop Sulphur Mountain.
Despite underlying tensions, ministers described their conversations with Bessent as constructive. Canada’s Finance Minister François-Philippe Champagne commented:
“It’s quite normal when you meet your biggest customer, that there’s a lot to discuss. We get along very well together.”
According to The New York Times, the Banff summit showed that, despite the increasingly toxic global trade environment fostered by the U.S. administration and growing instability in the world economy, the G7 is striving to maintain a degree of unity—at least on the Ukraine issue. But under escalating pressure from President Trump’s policies, even that consensus is becoming harder to preserve.
This article was prepared based on materials published by The New York Times. The author does not claim authorship of the original text but presents their interpretation of the content for informational purposes.
The original article can be found at the following link: The New York Times.
All rights to the original text belong to The New York Times.
