Trump trade clash dooms prospects of G7 consensus

US President Donald Trump goes to this week’s Quebec G7 touting an America First agenda that hits US allies with trade tariffs and threatens multilateral free trade deals.

His stance is expected to receive such a hostile reception from the other leaders of the world’s richest democracies that some observers have suggested renaming the G7 summit to the G6+1.

Mr Trump may be distracted by preparations for his June 12 summit in Singapore with North Korea’s Kim Jong Un immediately after Canada.

But it is not a stretch to imagine that the US leader will enjoy a warmer encounter with the autocrat from Pyongyang than with his Canadian host and European and Japanese allies.

Leaders like Canada’s Prime Minister Justin Trudeau and Germany’s Chancellor Angela Merkel admit it will be difficult to even agree a joint communique at the two-day meeting.

“We know certainly that there will be frank and sometimes difficult discussions around the G7 table, particularly with the US president on tariffs,” Mr Trudeau told reporters.

Mr Trump’s decision to impose tariffs on steel and aluminium – and other goods, such as German luxury cars – have pushed G7 members to the brink of all-out trade war.

Europe does not come to Quebec from a position of strength. Britain’s Theresa May is mired in Brexit negotiations and Italian premier Giuseppe Conte only formally took power on Wednesday.

French President Emmanuel Macron made initial headway with Mr Trump, but has failed to sway the US leader on any issue, while Mrs Merkel has been distracted by coalition negotiations.

The G7’s only Asian member, Japan, has close relations with the White House, but Prime Minister Shinzo Abe’s support for Mr Trump’s North Korean outreach has not seen his country spared the tariffs.

So the prospect of a joint communique encompassing trade seems faint, and the summit may be capped by a simple statement summarising the narrow areas of consensus.

Mr William Reinsch, a senior adviser at the Center for Strategic and International Studies (CSIS) in Washington, said he expected the other six nations of the G7 to “gang up” on Mr Trump.

“The president’s proclivity, though, you know, when criticised is consistently to hit back,” he added.

The summit begins on Friday in La Malbaie, north of Quebec, and runs until Saturday, when Mr Trump will fly on to Singapore. – AFP