Banff, Alberta: Finance ministers and central bank governors from the Group of Seven (G7) industrialized nations are gathering this week in Banff, Alberta, to pursue consensus on a range of non-tariff economic issues. However, sources say that alignment with the United States may prove difficult, given the Trump administration’s insistence on advancing policies that prioritize U.S. interests.
The remaining G7 countries—Japan, Britain, Germany, France, Italy, and host Canada—are seeking to maintain cohesion within the Western alliance despite mounting challenges, including U.S. tariffs, policy reversals on climate, diverging views on global tax coordination, and the ongoing war in Ukraine.
Officials and experts on international economic diplomacy noted that any joint communique could feature intentionally vague language or omit controversial topics to preserve group unity. A source briefed on U.S. positions warned that any final statement must align with Trump administration priorities.
“We’re not inclined to do a communique just for the sake of doing a communique,” the source told reporters on condition of anonymity.
U.S. Treasury Secretary Scott Bessent, attending the three-day gathering in Banff, is expected to take a firm stance on trade issues. Though no bilateral trade deals are on the agenda, steep tariffs imposed by Washington are likely to dominate the conversations.
Several G7 countries are under threat of higher reciprocal U.S. tariffs—potentially rising to 20% or more by early July. While Britain has negotiated a limited trade deal, it still faces 10% duties on most goods. Canada, the host, continues to wrestle with a separate 25% U.S. tariff affecting many of its exports.
“No one expects this to be a big moment where the U.S. declares that for G7 and other partners there will be a special regime that’s more favorable,” said Charles Lichfield, deputy director of the Atlantic Council’s GeoEconomics Center.
According to Lichfield, ministers from other G7 nations will likely remind Bessent that they remain America’s closest allies—yet are under pressure to challenge China while simultaneously confronting U.S. trade measures.
Tackling China’s Economic Model
One of the meeting’s focal points will be China’s economic practices. A Treasury spokesperson stated that Bessent would advocate for a coordinated G7 response to China’s state-driven economy.
“The G7 must work together to protect our workers and firms from China’s unfair practices,” the spokesperson added.
Bessent, a former hedge fund executive, has consistently criticized China’s industrial overcapacity and market-distorting subsidies. His comparatively moderate tone on trade, however, may prompt fellow finance ministers to encourage him to push for more measured policies within the Trump administration.
“G7 ministers will encourage him to push for more moderate administration policies on trade,” said Mark Sobel, a former U.S. Treasury and IMF official and U.S. chairman of OMFIF.
Crafting a Delicate Consensus
Despite tensions, host Canada appears determined to secure a joint statement that would lay the groundwork for the upcoming G7 leaders’ summit in Kananaskis. A draft communique is already in circulation, according to sources familiar with the talks.
This year’s statement is expected to include a general expression of support for Ukraine amid its continued resistance to Russia’s invasion. Ukrainian Finance Minister Serhii Marchenko will attend the meeting, and the European Union is preparing a fresh sanctions package targeting Moscow.
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However, this communique will likely be far less specific than the one issued in October 2024, which detailed a $50 billion loan package for Ukraine backed by earnings from frozen Russian assets.
Complicating matters further, former President Trump announced after a call with Vladimir Putin that ceasefire talks between Russia and Ukraine would begin immediately. This unexpected development could delay new sanctions as parties assess the evolving peace process.
A U.S. source confirmed that Bessent remains open to additional sanctions to pressure Moscow but emphasized that action would depend on “the broader peace process.”
Areas of Agreement
Despite divisions on tariffs and climate, G7 countries are expected to agree on several other matters. These include support for the IMF and World Bank—both recently reaffirmed by Bessent—and joint efforts to combat financial crimes such as money laundering.
Bessent is also expected to promote greater reliance on the private sector to stimulate global growth.
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Still, climate policy remains a contentious issue, as Trump’s administration continues to distance itself from earlier U.S. commitments to green energy and environmental cooperation.
The economic impact of the Trump administration’s tariffs—particularly on investment and global business sentiment—presents another challenge. G7 ministers are reportedly debating how to reference these effects in the final communique without directly attributing them to U.S. actions.
“My crystal ball is so murky now, I can’t really see the future very well,” said Suzanne Clark, CEO of the U.S. Chamber of Commerce, during a G7 business conference in Ottawa.
