G-7 Officials to Discuss U.S. Tariffs on Steel Imports

June 1, 2018

Whistler- Top finance officials from the Group of Seven major countries started their three-day meeting Thursday, with U.S. tariffs on steel and aluminum imports expected to be high on the agenda.

The gathering in Whistler, Canada, brings together the finance ministers and central bank governors of Britain, Canada, France, Germany, Italy, Japan and the United States.

The talks kicked off on the day the United States said that it will implement steel and aluminum tariffs against the European Union, Canada and Mexico, rather than keeping the three exempted from the tariffs.

Canadian Finance Minister Bill Morneau, chair of the G-7 meeting, told a press conference that the U.S. tariff issue needs to be discussed first and foremost.

In March, the United States put into effect additional tariffs of 25 pct on steel and 10 pct on aluminum imported from many trading partners, including Japan, as a measure to counter a threat to national security.

Morneau said the tariff imposition for security reasons is absurd and a clear risk factor to the global economy, adding that it will certainly be at the center of an intense debate in the G-7 meeting.

"Protectionism is undesirable," Bank of Japan Governor Haruhiko Kuroda told reporters in Whistler. "We'll discuss how the global economy will be affected by protectionist moves."

Besides trade issues, the G-7 officials will talk about downside risks to the global economy, including capital outflows from emerging economies spurred by U.S. interest rate increases.

No joint statement is likely to be adopted at the meeting. Jiji Press