G7 Finance leaders convene in Canada amid Ukraine crisis, trade tensions

Top financial officials from the Group of Seven (G7) nations have gathered in Alberta, Canada, for a crucial summit focused on global economic concerns, the ongoing war in Ukraine, and renewed trade strains sparked by U.S. President Donald Trump’s tariff policies.

The three-day meeting, which kicked off on Tuesday in the resort town of Banff, brings together finance ministers and central bank governors from the world’s leading industrialized democracies.

Alongside economic challenges, the group is expected to focus heavily on unity in supporting Ukraine, while also addressing trade issues and unfair market practices, particularly those linked to China.

Ukraine’s Finance Minister, Sergii Marchenko, is attending the sessions, highlighting the country’s ongoing significance on the G7 agenda since Russia’s full-scale invasion in 2022.

However, divisions have begun to surface among member countries as Trump resumes the presidency and reasserts his unpredictable foreign and economic policies.

Trump, who has reintroduced sweeping tariffs affecting both allies and rivals, claimed earlier this week that peace talks between Ukraine and Russia could begin following a call with Russian President Vladimir Putin.

His remarks, along with unilateral decisions on trade, have unsettled G7 dynamics.

A source familiar with the U.S. delegation noted that the Trump administration is not keen on issuing a joint statement unless it clearly reflects their priorities.

Canadian Prime Minister Mark Carney has already invited Ukrainian President Volodymyr Zelensky to attend the main G7 summit in June.

In the meantime, Marchenko is expected to speak with the media during the finance-focused gathering.

U.S. Treasury Secretary Scott Bessent is leading the American delegation and is said to be emphasizing a return to the G7’s foundational focus: addressing global imbalances and confronting non-competitive practices in and beyond the G7.

A key concern for many members remains China’s excess industrial output, which is believed to be distorting global markets.

According to sources, this will be a central point of discussion.

Despite a history of collaboration, recent months have been marked by Trump’s imposition of a broad 10% tariff on many of America’s trade partners.

He has also targeted specific sectors like steel, aluminum, and automobiles, raising tensions particularly with Europe and Canada. A pending agreement with the United Kingdom also remains unresolved.

These policies have had ripple effects. The International Monetary Fund recently downgraded its global growth forecast, citing the drag from increased tariffs. Canada, one of the hardest-hit U.S. trading partners, stands to suffer significant economic fallout.

Ananya Kumar, an analyst with the Atlantic Council, called this year’s meeting “unusual,” noting that the U.S. president’s trade approach has clouded the mood.

She added, “The elephant in the room is how willing the U.S. is to engage constructively with its allies.”

Although no major trade deals are expected to be finalized this week, officials said progress has been made in ongoing negotiations, and the Banff summit presents a chance to solidify shared positions.

Much attention is focused on Bessent, who previously played a key role in easing trade tensions with China. Economists see him as a stabilizing figure in uncertain times.

“He’s viewed as a rational negotiator,” said Carl Weinberg, chief economist at High Frequency Economics. “But ultimately, he’s working under Trump’s direction.”

Participants hope that progress on trade could open the door to more collaboration on other priorities, including continued support for Ukraine.

Canadian Finance Minister François-Philippe Champagne is co-chairing the sessions, which also cover topics such as financial crime, global resilience, and the role of artificial intelligence in shaping future economic policy.