Leaders of the Group of Seven (G7) nations convened Monday in Canada’s Rocky Mountains for a summit already overshadowed by escalating tensions between Israel and Iran, ongoing trade disputes, and deep divisions over global economic policy.
The gathering marks U.S. President Donald Trump’s return to Canada since the fractious 2018 summit, where he famously refused to endorse the joint communiqué amid clashes over trade tariffs. This year, with geopolitical crises multiplying and Trump’s aggressive trade policies straining alliances, the goal for many leaders is simply to avoid open confrontation.
Trade Wars Loom Over Summit
Trump arrives fresh from imposing sweeping tariffs on steel, aluminum, and automobiles, targeting allies like Japan and Europe while threatening further hikes after July 9. His administration has framed the measures as necessary to counter China’s economic dominance, but the moves have angered traditional partners.
“We have our trade deals,” Trump said before departing Washington. “All we have to do is send a letter saying, ‘This is what you’re going to have to pay.’”
Canada and Mexico face separate 25% tariffs under Trump’s anti-drug trafficking push, despite protections under the USMCA trade deal. Meanwhile, the U.K. secured limited exemptions but remains subject to baseline 10% tariffs, which the White House relies on to offset tax cuts.
Geopolitical Tensions Take Center Stage
Beyond trade, the G7 faces mounting pressure to address the Israel-Iran standoff over Tehran’s nuclear program, the ongoing war in Gaza, and Russia’s invasion of Ukraine. The summit also comes as Trump sends mixed signals about attending November’s G20 meeting in South Africa, raising questions about the future of multilateral cooperation.
Notably, no joint statement is expected this year—a sign of the Trump administration’s reluctance to commit to shared positions that could conflict with its “America First” agenda.
A Fractured Alliance?
European and Asian leaders hope to temper Trump’s rhetoric through diplomacy. U.K. Prime Minister Keir Starmer emphasized his “good relationship” with Trump, while former Canadian G7 adviser Peter Boehm recalled the 2018 clash over the “rules-based order” that defined Trump’s isolation.
But with Trump prioritizing tariffs and fossil fuel expansion over climate action and collective security, analysts doubt meaningful consensus is possible.
“Trump believes no deal is better than a bad deal,” said Caitlin Welsh of the Center for Strategic and International Studies.
As leaders meet bilaterally—including Trump with Canada’s Mark Carney, Mexico’s Claudia Sheinbaum, and Ukraine’s Volodymyr Zelenskyy—the summit may highlight divisions more than unity.
“The G7 was meant to solve global problems together,” said Josh Lipsky of the Atlantic Council. “But if the U.S. keeps taxing its allies, why should they cooperate?”
For now, the world watches whether this G7 can navigate crises—or if it will become another casualty of rising discord.
