Leaders from the world’s major economies will gather in Canada this week for the annual G7 summit, just days after a dramatic escalation in the Middle East following Israel’s strike on Iran. While such a major security development would normally take center stage, this year’s summit is expected to focus heavily on trade policy — particularly U.S. tariffs.
President Donald Trump arrives at the summit with a looming July 9 deadline for dozens of countries to finalize trade deals or face steep new tariffs. The uncertainty has already begun to impact global markets and economies, with U.S. trading partners experiencing downturns. In the United Kingdom, exports to the U.S. dropped sharply, contributing to the country’s worst monthly economic contraction in nearly two years.
Trump’s current trade policy includes a blanket 10% tariff on most imports, as well as targeted tariffs as high as 50% on steel, aluminum, and automobiles. Whether these measures will escalate further remains unclear, but the pressure on attending nations to secure favorable terms is mounting.
The World Bank recently warned of the weakest decade of global economic growth since the 1960s, citing U.S. trade uncertainty as a primary factor. The report forecasts particular slowdowns in the U.S. and Europe if tariff tensions continue.
Alongside G7 members — the U.S., Canada, France, Germany, Italy, Japan, and the U.K. — additional countries such as India, South Korea, and Brazil will participate. Leaders are expected to hold sideline meetings to address trade issues, but observers remain skeptical that significant breakthroughs will emerge.
Source: CNN