International Heads of State will persist in trade discussions at the G7 Summit. They find it imperative to continue these conversations.
Free and Frank Discussion at the G7 Summit
World leaders, including President Trump, are ready to talk turkey at the upcoming G7 summit in Canada. But it's not just Iran that's causing a stir - trade is the hot topic that refuses to cool.
"You've got to talk about it, from any country's perspective," said Josh Lipsky, the big cheese at the Atlantic Council. And that's no joke, since it's just a few weeks till July 9, when Trump's self-imposed deadline for high tariffs kicks in, and dozens of countries aren't laughing about it.
The trade talks could get dicey, with Trump threatening to hike tariffs to 50% on goods from these countries, including EU exports, if no deals are hammered out. And it's no laughing matter for economies like the UK, which has already seen its economy shrink at rates not seen in nearly two years due to a drop in exports to the US.
But is a deal in the cards? On a Friday call with reporters, a senior US official said trade would definitely be on the table, along with international security matters. Already, Japan's Prime Minister Shigeru Ishiba has marked his meeting with Trump at the summit as an opportunity to discuss ongoing trade negotiations.
But don't expect a big announcement just yet, says Lipsky. He thinks Japan, or any other country present at the meeting, is likely to keep their cards close to their chest, especially when it comes to negotiations with the Trump administration.
However, there's one wild card on the table - the EU. Two weeks ago, Trump threatened to slap a 50% tariff on EU exports to the US, citing a lack of progress in negotiations. But then, after a chat with EU Commission President Ursula von der Leyen, he backtracked.
The EU's not ready to negotiate away its VAT system, which Trump claims unfairly impacts American exports. And even though Trump will meet with Francois Macron, Angela Merkel, and Giorgia Meloni following their recent visit to the White House, trade might not be a top priority. That's because von der Leyen is leading the negotiations, says Lipsky, creating an uncomfortable dynamic during the meetings.
In short, the G7 summit is shaping up to be a toss-up between international security and trade talks. And while there's a push for the US to abandon its protectionist measures, the path to a comprehensive US-EU trade deal is far from guaranteed, due to divergent interests and external pressures. But a successful deal could bring significant benefits to both regions and stabilize global markets. So let's hope the leaders can put aside their differences and come up with a plan that works for everyone!
- note: The EU is not just a single country, but rather an economic and political union consisting of 27 member states, including France, Germany, Italy, and the UK, among others. The European Commission, headed by Ursula von der Leyen, is the institution that acts as the executive body of the EU, and it plays a key role in negotiating trade deals on behalf of all member states. VAT stands for Value-Added Tax, a consumption tax imposed on goods and services. The EU does not have its own VAT system, but each member state has its own VAT rate and rules for Application.
Amid the various discussions at the G7 summit, the future of finance and business relations, particularly trade, is under intense scrutiny. In this context, politics will undoubtedly play a crucial role, especially in relation to the rising tension over tariffs between the US and several countries, including EU members, which could impact general-news headlines significantly.
