'Consequential:' Stakes are high as G7 financial chiefs meet in Banff

National Post

20-05-2025

A gathering of many of the world's most powerful financial decision-makers at a mountain retreat in Banff this week could herald the most crucial series of G7 meetings in years.
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That's the view of a number of political and economic experts ahead of the G7 Finance Ministers and Central Bank Governors summit, which takes place on the slopes of Sulphur Mountain from May 20 to 22.
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Strains in global alliances due to a U.S.-instigated trade war and a possible crossroads in the Ukraine-Russia war makes the gathering — and the more prominent G7 leaders' gathering in Kananaskis next month — potentially the most impactful in years, said University of Calgary economist Trevor Tombe.
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'It could be one of the most important G7 meetings we've had in quite some time. It means it's going to be quite consequential,' said Tombe.
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The meeting of finance ministers and bank governors from host country Canada, the U.S., Germany, the U.K., Italy, France and Japan could try to stake out common ground on the trade front to direct their fire against China, particularly on the crucial steel and aluminum front, he said.
And though the so-called trade deal brandished by U.S. President Donald Trump is largely dubious, it could provide the high-ranking officials with a blueprint they can build on, said Tombe.
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'It might be a bit ridiculous, but it took away some of the uncertainty . . . it might be extended to other economies,' he said.
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'If there's a desire to make some deals like with the U.K., it might be an opportunity (in Banff) to discuss what these deals might look like.'
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It comes at a time when economists and world leaders worry about a global recession brought on by trade disruptions.
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That turbulence has been evident in the past few days as Moody's downgraded the American credit rating, and U.S. Treasury Secretary Scott Bessent warned his country could increase tariffs against countries that fail to negotiate trade deals in 'good faith.' He's also admitted consumer prices at retail giant Walmart will likely increase due to tariffs.
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U.S. tariffs against Canadian business sectors remain, and in public, Bessent has stuck to the White House line that Trump's unpredictability is a negotiating tactic.