Optimism at G7 summit that neighbours can settle damaging dispute
President Donald Trump expressed optimism about settling a trade dispute with Canada during his time at the Group of Seven summit, calling a deal in the coming weeks between the US and its northern neighbor “achievable.”
“I think we have different concepts. I have a tariff concept,” Trump said during a meeting with Canadian Prime Minister Mark Carney. “Mark has a different concept, which is something that some people like, but we’re going to see if we can get to the bottom of it today.”
While Trump said he favored tariffs because they were “simple” and “easy,” he indicated a willingness to hear out the proposal from Carney, who is seeking to limit punishing levies on key industries, including steel, aluminum and autos.
“I think Mark has a more complex idea, but also very good,” Trump said. “So we’re going to look at both, and we’re going to see what we’re going to come out with something.”
The leaders of some of the world’s richest countries are facing a tariff barrage from Trump that threatens to damage their economies as well as stark differences over how to bring an end to Russia’s war in Ukraine and handle an escalating fight between Israel and Iran that threatens to further destabilize the Middle East.
The US president acknowledged trade would loom large on the agenda, as other world leaders push to secure tariff agreements to lower the higher duties Trump has threatened to impose in July.
Trump in recent weeks, however, has appeared to downplay the ongoing negotiations with trading partners, suggesting that if he does not secure suitable deals that he will unilaterally impose tariff rates.
Last week, Carney touted progress in talks between the US and Canada but downplayed expectations of a quick deal. The countries have exchanged proposals on paper with the most recent discussions focused on trade rules for steel and aluminum, according to people familiar with the talks.
Still, Trump on Monday, asked if a deal could be struck in the coming days or weeks, responded affirmatively, saying the countries could achieve such a result.
If the leaders fail to strike an agreement, Carney has held out the threat of retaliation after he decided not to increase counter-tariffs on US goods after Trump hiked the import tax on steel and aluminum to 50%.
In addition to the metals tariffs, Trump has also placed levies on foreign-made vehicles and 25% tariffs on goods from Canada and Mexico that do not comply with the North American free trade accord he negotiated during his first term. And the US president has threatened import taxes on other significant Canadian exports such as lumber and copper.
Trump also used the opening meeting to complain that the group no longer included Russia and indicated a willingness to incorporate China into the economic forum.
“I think you wouldn’t have a war right now if you had Russia in,” Trump said.
The president has long criticized former US President Barack Obama for the decision to expel Russia from the then-G-8 after Russian President Vladimir Putin annexed Crimea in 2014.
Asked if he was open to China, the world’s second largest economy, joining talks with the group, Trump said it was “not a bad idea.”
“I don’t mind that. If somebody wants to suggest China coming in, I think we suggest it, but you want to have people that you can talk to,” he added.
