G7 Tensions and Tariffs: Canada Battles U.S. Amid Ukraine Support Talks

Canada's Finance Minister, Francois-Philippe Champagne, emphasizes the need for unity within the G7 as U.S. tariffs impact Canadian goods. Tensions rise between Canada and the U.S. amid discussions of supporting Ukraine's economy. Canadian and Ukrainian officials highlight the need for private sector involvement and frozen Russian asset management.

The unity among the Group of Seven (G7) industrial democracies is being tested as tensions over U.S. tariffs persist, according to Canada's Finance Minister, Francois-Philippe Champagne. Leading the G7 in Canada this year, Champagne has highlighted the impact of American tariffs on a significant portion of Canadian exports.

In a meeting held in Washington, Champagne expressed the urgency for investment to combat what he termed an existential crisis. Speaking on the sidelines of the International Monetary Fund and World Bank spring meetings, Champagne shared that efforts to conduct a bilateral meeting on tariffs with U.S. Treasury Secretary Scott Bessent were unsuccessful.

The ongoing tariff issue stems from U.S. President Donald Trump's imposition of 25% tariffs on Canadian autos, steel, and aluminum. This action has led to job losses in Canadian factories. As elections approach, Champagne anticipates providing more insights into negotiations with Washington if Prime Minister Mark Carney is reelected.

Meanwhile, G7 ministers have addressed support for Ukraine, with Ukrainian Finance Minister Sergii Marchenko presenting the country's economic challenges, including a staggering $524 billion needed for reconstruction, as estimated by the World Bank.

Discussions continued about the management of $300 billion in frozen Russian assets. Champagne emphasized the importance of U.S. support for international financial institutions and reiterated that entities financing Russia's war efforts should be excluded from Ukraine's rebuilding process.

(With inputs from agencies.)