Zürcher Nachrichten - G7 finance chiefs hold talks under strain of Trump tariffs

The gathering in Canada, which also includes central bank governors, marks a test of cohesion among the Group of Seven advanced economies, as Trump's trade policies threaten to drag down economic growth.

The leaders began the day by exchanging pleasantries during a brief opening ceremony and group photo in front of the Rocky Mountains in western Canada's Banff National Park.

Once broadly aligned, the grouping -- comprising Britain, Canada, France, Germany, Italy, Japan and the United States -- could struggle for unity amid the upheaval caused by Trump's trade wars.

A European official, who requested anonymity when discussing the ongoing talks, told AFP the presence of US Treasury Secretary Scott Bessent was positive.

"At least the Americans remain engaged in the multilateral system. We clearly disagree on tariffs but the G7 is the place for candid exchanges, to advocate for our point of view and seek adjustments," the official said.

Bessent's counterparts are seeking common ground and a lowering of temperatures with the United States on trade, while sources briefed on US participation said Bessent would raise issues like China's non-market practices and excess industrial capacity.

The G7 is also expected to discuss potential fees on low-value imports from China.

Bessent met his German counterpart Lars Klingbeil on the sidelines of the G7, with talks centered on trade policy and Ukraine, a German source said. Both sides have agreed to meet again in Washington.

Bessent is expected to hold bilateral talks with Canadian Finance Minister Francois-Philippe Champagne later Wednesday.

- Strong message -

Champagne told reporters on Tuesday the presence of Ukrainian Finance Minister Sergii Marchenko's presence in Banff "sends a strong message to the world" that members are recommitting to support the country against Russia's invasion.

Marchenko was expected to join a session on Ukraine set for Wednesday afternoon.

He told reporters Tuesday he would seek during the gathering to reiterate Ukraine's position on the need for further pressure on Russia.

Champagne opened Wednesday's bilateral meeting with French Finance Minister Eric Lombard by highlighting the "almost perfect alignment" shared by the countries on key issues.

"We're all about restoring stability to trade between the G7 countries, but we're also talking about growth," Champagne said.

Lombard, in turn, noted the "quality of dialogue" with Canada, saying "that's what we need in the world."

Champagne stressed a day prior that "everyone wins" when trade rules are "fair and predictable," expressing his belief that Canada can serve as a bridge among members in a turbulent time.

On Bessent and the pressures from US trade policy, Champagne told reporters that colleagues are eager to speak with the US Treasury chief and discuss how everyone can work together.

This week, all eyes will be on whether the G7 can find common wording despite their differences.

But the European official told AFP "the important thing is not whether there is a communique, but moving forward together."

A source briefed on US participation said a consensus should align with Trump administration priorities as well.

"It is a significant G7 existentially," said Ananya Kumar, a deputy director at Washington-based think tank the Atlantic Council.

"I don't think in any of the past years, people have questioned the US's relationship with the other G7 member states as much as they have in the last 100 days," she told AFP ahead of the gathering.

"The big theme is going to be how do we prevent global instability, how do we find consensus in this chaos?"

U.Ammann--NZN