{"id":81884,"date":"2018-06-10T13:00:37","date_gmt":"2018-06-10T13:00:37","guid":{"rendered":"http:\/\/www.bnreport.com\/trump-tariffs-stir-up-angst-ahead-of-g7-summit-5\/"},"modified":"2018-06-10T13:00:37","modified_gmt":"2018-06-10T13:00:37","slug":"trump-tariffs-stir-up-angst-ahead-of-g7-summit-5","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/trump-tariffs-stir-up-angst-ahead-of-g7-summit-5\/","title":{"rendered":"Trump tariffs stir up angst ahead of G7 summit"},"content":{"rendered":"

Foreign diplomats and U.S. officials are looking ahead to this weeks G7 summit with a sense of dread amid growing international tensions with President Donald Trump and little hope of reaching consensus.<\/p>\n

With just three days until Trump arrives in Canada for the annual meeting with Americas closest foreign allies, member countries are fuming over the presidents decision to impose steep tariffs on steel and aluminum imports, a move that could have dire economic consequences for every other member of the Group of Seven major industrial nations.<\/p>\n

Canada, Japan and key European Union nations have long sought to win over the U.S. president by playing nice on the world stage. But after nearly a year and a half, the G7 countries frustrations are bursting into public view.<\/p>\n

Prime Minister Justin Trudeau of Canada, who is hosting the summit, excoriated Trumps recent tariff decision, responding with dollar-for-dollar tariffs of his own and calling the presidents decision \u201cinsulting\u201d and \u201ctotally unacceptable.\u201d<\/p>\n

Japan has grown increasingly concerned that it is being pushed to the side as Trump prepares to meet with North Koreas dictator, Kim Jong Un. And France, whose president, Emmanuel Macron, had worked hard to build rapport with Trump, is reeling from a \u201cterrible\u201d phone call<\/a> with the American president that went south after Macron bluntly criticized U.S. tariffs.<\/p>\n

\n

G7 negotiators remain deeply divided over the joint statement that countries usually release at the end of the annual event.<\/p>\n<\/blockquote>\n

Trump is expected to get an earful from his foreign counterparts during the meeting, which starts on Friday. U.S. officials acknowledged privately that the gathering could be rife with awkward moments, with one official predicting that it will be a \u201cmess.\u201d<\/p>\n

\u201cI think they will be ganging up on him,\u201d said Bill Reinsch, a trade expert at the Center for Strategic and International Studies. \u201cBut in addition to the immediate issue of the tariffs, there is an underlying debate that is going to go on \u2026 and that is a growing concern that the entire rules-based international system and the institutions that underlie it are increasingly at risk.\u201d<\/p>\n

G7 negotiators remain deeply divided over the joint statement that countries usually release at the end of the annual event. The statement is meant to project unity among the worlds biggest economies, detailing a range of policy issues on which they can all agree.<\/p>\n

\u201cThe G7 traditionally, for 20-plus years, has been a group of like-minded developed countries that sit together and figure out what do we do to address key global problems,\u201d said Robert Fisher, a consultant with Hills & Company and a former U.S. trade official who helped negotiate NAFTA. \u201cNow trade has become, perhaps more than anything, the major dividing line between the G6 and the one. And we are the one.\u201d<\/p>\n

\n

Some foreign officials, meanwhile, have begun wondering whether its better for Trump to skip the G7 altogether.<\/p>\n<\/blockquote>\n

Another U.S. official told POLITICO that he thinks there is no chance the U.S. and the other G7 members could reach common ground on crucial issues like trade and climate change, adding that it is increasingly likely there wont be a joint statement at all at the end of the meeting. Multiple U.S. officials have complained privately that early drafts of the statement were far too liberal, arguing that there was little the administration could latch on to.<\/p>\n

Some foreign officials, meanwhile, have begun wondering whether its better for Trump to skip the G7 altogether rather than risk his making a spectacle at the event.<\/p>\n

\u201cIf the president were not to go, that would be a major snub,\u201d Fisher said. \u201cI would see that as a further escalation in tensions between the U.S. and, normally, our allies.\u201d<\/p>\n

Trade is expected to be a central topic of discussion throughout the summit, and G7 leaders will sit down for a session on \u201ceconomic growth, the future of work and trade\u201d as one of their first meetings, according to a background document<\/a> released by the Council of the EU, which represents the executive governments of European Union member countries.<\/p>\n

A senior EU official sought to moderate expectations that any progress would be made with Trump over the tariffs, saying the potential for progress is \u201cextremely low.\u201d<\/p>\n

\u201cWe do not expect any breakthrough on the trade dispute with the U.S,\u201d the official told reporters. He added that \u201cthe tariffs imposed \u2026 last week have significantly increased tensions\u201d between the U.S. and its G7 partners, which are \u201cunited\u201d in their ambition to retaliate against the Trump tariffs.<\/p>\n

\n

\u201cThis is a very rare case where opposition against the United States was unanimous\u201d \u2014 Taro Aso, Japanese finance minister<\/em><\/p>\n<\/blockquote>\n

A summit this past weekend among the G7 finance ministers offered a preview of what could be in store for Trump, after leaders faced off over unprecedented divisions on policy and failed to reach consensus on a joint concluding statement.<\/p>\n

In a rare show of disunity, a chairs summary written by Canada and released at the close of the event highlighted concerns over \u201ctariffs imposed by the United States on its friends and allies\u201d that \u201cundermine open trade and confidence in the global economy.\u201d The summary said ministers of the six other countries \u2014 all of which are now paying tariffs on their steel and aluminum exports to the U.S. \u2014 requested that Treasury Secretary Steven Mnuchin, who represented the U.S. at the finance meeting, communicate to Trump their \u201cunanimous concern and disappointment.\u201d<\/p>\n

\u201cIve been to these meetings for a long time,\u201d the Japanese finance minister, Taro Aso, told reporters, according to Reuters. \u201cBut this is a very rare case where opposition against the United States was unanimous.\u201d<\/p>\n

Trump, for his part, is already looking past the G7, focusing much of his attention on the summit next week with Kim, according to administration officials. The president is scheduled to depart for Singapore, the summit site, from Canada at the end of the G7 gathering.<\/p>\n

<\/p>\n

Prime Minister Justin Trudeau of Canada, who is hosting the summit, excoriated Trumps recent tariff decision | Kevin Dietsch\/Pool photo via Getty Images<\/p>\n

Trump administration officials have publicly sought to tamp down concerns that tariff blowback will dominate and derail the summit agenda, even as anxiety builds across the Atlantic that the two-day event will ultimately produce nothing at all.<\/p>\n

Larry Kudlow, director of the National Economic Council, rejected the idea earlier Tuesday that the steel and aluminum tariffs had any damaging effects and praised Trumps trade policies generally, calling the president a \u201ctrade reformer.\u201d He also lauded the strength of the U.S. economy and said officials would \u201ctake that story to the G7 meeting.\u201d<\/p>\n

\u201cI hope its a G7 meeting,\u201d he added in an interview on Fox News. \u201cI hope its not a G-1-plus-six meeting, and I hope we can make some sense out of the whole story.\u201d<\/p>\n

Michael Crowley and Hans von der Burchard contributed reporting.<\/p>\n

Read this next: The West still isnt prepared to stop Russia meddling in elections
<\/a><\/em><\/h2>\n","protected":false},"excerpt":{"rendered":"

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