G-7 Meeting Leaves U.S. Isolated over Metal Tariffs

June 4, 2018

Whistler, Canada- Most of the Group of Seven major countries expressed regrets over U.S. steel and aluminum tariffs at a meeting that ended Saturday, leaving the United States isolated in the rich countries' club.

"Concerns were expressed that the tariffs imposed by the United States on its friends and allies, on the grounds of national security, undermine open trade and confidence in the global economy," said a chair's summary to wrap up the three-day meeting of the G-7 top finance officials in Whistler, western Canada.

Most participants "regret the uncertainty caused by trade actions which run counter to the goal of economic growth," said the summary, released by Canada, which holds the G-7 presidency.

Discussions on U.S. protectionist actions will carry over to the G-7 summit, which will open Friday for a two-day run. But a tough going is expected.

The G-7 finance ministers and central bank heads did not issue a joint statement. It is unusual for a country holding the G-7 presidency to criticize a specific member state.

The divide in the G-7 may have broad implications for the future of the world order at a time China is increasing its political and economic influence around the world.

Besides Canada and the United States, the Whistler meeting brought together Britain, France, Germany, Italy, Japan and the European Union. Japanese participants included Finance Minister Taro Aso and Bank of Japan Governor Haruhiko Kuroda.

Many participants "highlighted the negative impact of unilateral trade actions by the United States," the summary said.

They requested that U.S. Treasury Secretary Steven Mnuchin "communicate their unanimous concern and disappointment" to President Donald Trump, the summary also said.

"The international community is faced with significant economic and security issues, which are best addressed through a united front from G-7 countries," said the document.

"This collaboration and cooperation has been put at risk by trade actions against other members," the summary added.

After the meeting, Aso told a news conference, "It's only natural" that U.S. protectionist acts have been criticized as unreasonable.

Many G-7 countries "are united in their criticism of the United States, which is an unprecedented move" in the history of the G-7, Aso continued.

Mnuchin defended the U.S. trade policy, saying that his country is only trying to ensure fair and balanced trade.

The chair's summary said the global economic expansion is expected to continue. It also said the G-7 countries will continue to monitor closely major risk factors such as "potential vulnerabilities" in some emerging economies.

"Crypto-assets may...be used to carry out illicit transactions, and may raise issues of investor protection and market integrity," the paper said, calling for international coordination to ensure effective regulatory actions. Jiji Press