Top finance officials from the Group of Seven (G7) nations have convened in Banff, Alberta, for a high-stakes summit dominated by the ongoing war in Ukraine and mounting global trade tensions fueled by U.S. President Donald Trump’s protectionist policies.
Over three days of talks beginning Tuesday, G7 finance ministers and central bank governors will focus on global economic stability, the Ukraine conflict, and concerns over non-market economic practices. Ukrainian Finance Minister Sergii Marchenko is expected to participate and address the media.
The meeting comes at a time of growing division among G7 nations—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—especially following Trump’s return to the White House earlier this year. His outreach to Russia and imposition of sweeping tariffs have disrupted what was once a largely unified bloc.
President Trump announced Monday that peace talks between Russia and Ukraine would soon begin following his conversation with Russian President Vladimir Putin. However, skepticism remains within the G7, particularly regarding Washington’s commitment to a unified statement from the summit. A U.S. official noted that any communique must reflect the Trump administration’s priorities, rather than serve as a symbolic gesture.
Canadian Prime Minister Mark Carney, who will host the broader G7 summit in June, has extended an invitation to Ukrainian President Volodymyr Zelensky. Meanwhile, U.S. Treasury Secretary Scott Bessent is expected to steer discussions toward economic fundamentals and trade imbalances, particularly highlighting concerns over China’s industrial overcapacity.
The meeting’s agenda also includes tackling financial crime, the integration of artificial intelligence in financial systems, and strengthening economic resilience.
Trump’s Tariffs Cast a Long Shadow
Trump’s recent imposition of a blanket 10% tariff on most U.S. trading partners—alongside specific levies on steel, aluminum, and automobiles—has created unease among allies. Analysts warn that the tariffs have strained relations and clouded prospects for collaborative trade policies.
“The tariffs are the elephant in the room,” said Ananya Kumar, deputy director at the Atlantic Council. “Success might look like the U.S. showing genuine interest in trade talks.”
While no major trade deals are expected during the summit, progress behind closed doors could set the stage for future negotiations. Bessent, praised for defusing tariff tensions with China, is seen by some as a stabilizing presence.
“He’s considered the adult in the room,” said Carl Weinberg, chief economist at High Frequency Economics. “But he’s also under pressure to deliver on Trump’s agenda.”
As discussions unfold, Canada’s Finance Minister Francois-Philippe Champagne will co-chair sessions on economic security and Ukraine, aiming to preserve the G7’s collective stance on key global issues.
