G7 Summit in Canada: Trump’s Tariffs and Israel-Iran Tensions Steal the Spotlight

Posted on June 16, 2025, in News & Politics | U.S. News & Politics at Boncopia.com

The stunning vistas of the Canadian Rockies in Kananaskis, Alberta, set the stage for the 2025 G7 summit, where leaders of the world’s major economic powers convened on June 15. However, the serene backdrop belied the storm of global challenges dominating the agenda. From escalating tensions between Israel and Iran to U.S. President Donald Trump’s contentious trade war, the summit risked becoming a series of high-stakes bilateral talks rather than a unified front. Here’s a deep dive into the key issues, their implications, and what this means for global stability.

A Summit Under Pressure

The Group of Seven (G7)—comprising Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, plus the European Union—has long served as a platform for addressing global economic and security challenges. This year, Canadian Prime Minister Mark Carney hosted the summit with ambitions to focus on strengthening peace, building critical mineral supply chains, and fostering job creation. Yet, two major crises overshadowed these goals: the Israel-Iran conflict and Trump’s tariff threats.

As leaders arrived, the Middle East was reeling from Israel’s recent strikes on Iran and Tehran’s retaliatory actions. The conflict, which reportedly caught many world leaders off guard, underscored a volatile global landscape. Adding to the tension, Trump’s aggressive trade policies, including threats of sweeping tariffs on allies and adversaries alike, loomed large, threatening to fracture the G7’s unity.

The Israel-Iran Crisis: A Global Concern

The escalating conflict between Israel and Iran dominated discussions, with leaders scrambling to address its implications. According to reports, Israel had considered extreme measures, including a plan to target Iran’s Supreme Leader Ayatollah Ali Khamenei, which Trump vetoed, signaling the U.S.’s delicate balancing act. British Prime Minister Keir Starmer noted he had engaged in talks with Trump and Israeli Prime Minister Benjamin Netanyahu to de-escalate the crisis, expecting “intense discussions” at the summit.

European leaders, including European Commission President Ursula von der Leyen, expressed concern over Iran’s actions but stopped short of criticizing Israel’s strikes. Japan, however, broke ranks by denouncing Israel’s actions as “deeply regrettable,” highlighting fissures among G7 members. The conflict’s ripple effects, including skyrocketing oil prices and fears of regional instability, made it a top priority, with Canadian Senator Peter Boehm suggesting leaders might issue a statement to address the crisis.

For the U.S., the Israel-Iran situation poses a strategic challenge. Trump’s push to withdraw from the role of “world policeman” contrasts with his administration’s continued support for Israel, including providing missile defense aid. His recent call with Russian President Vladimir Putin, where they discussed the Middle East, further complicates the U.S.’s position, raising questions about potential mediation efforts.

Trump’s Trade War: A Threat to G7 Unity

While the Middle East crisis demanded attention, Trump’s trade policies were equally divisive. Since taking office in January 2025, Trump has imposed “reciprocal” tariffs on numerous countries, pausing them temporarily to negotiate new trade deals by July 9. These tariffs have strained relations with G7 allies, particularly Canada, Mexico, and the European Union, who rely heavily on trade with the U.S.

The summit risked becoming a series of bilateral negotiations as leaders sought one-on-one meetings with Trump to mitigate tariff impacts. Canadian Prime Minister Carney, hosting the summit, faced pressure to secure concessions, given Canada’s economic woes, including a 7% unemployment rate linked to the trade war. Experts like John Kirton expressed optimism that these talks could yield results, citing Trump’s preference for “big wins” and allies’ willingness to offer commitments like increased defense spending in exchange for tariff relief.

However, Trump’s rhetoric, including inflammatory remarks about making Canada the “51st state” and taking over Greenland, added tension. French President Emmanuel Macron’s symbolic stop in Greenland en route to the summit, where he reaffirmed support for its sovereignty, was a pointed rebuke to Trump’s ambitions. These provocations, combined with Trump’s history of disrupting G7 summits—most notably in 2018 when he withdrew U.S. support for the joint communiqué—made him the summit’s “wild card.”

Bilateral Talks Over Multilateral Unity

The G7’s traditional show of unity was at risk as leaders prioritized bilateral discussions with Trump. Peter Boehm, a veteran of six G7 summits, noted Trump’s preference for one-on-one meetings over multilateral roundtables, a dynamic that could sideline collective action. Invited non-G7 leaders from countries like India, Ukraine, Brazil, South Africa, South Korea, Australia, Mexico, and the UAE also sought Trump’s ear, particularly on trade.

The U.K., having recently struck a deal to reduce U.S. tariffs on autos, steel, and aluminum, found itself in an awkward position. Prime Minister Starmer faced criticism, especially from Canadians, for not addressing Trump’s “51st state” comments more forcefully. Starmer’s response, affirming Canada’s sovereignty while avoiding specifics, reflected the delicate dance of maintaining ties with both the U.S. and Commonwealth allies.

For the U.S., these bilateral talks are a chance to assert economic dominance. Trump’s aides view the summit as an opportunity to project strength, even if concrete trade deals remain elusive. However, the lack of progress could lead to higher tariffs in July, potentially tipping the global economy closer to a recession, as warned by the Organisation for Economic Cooperation and Development.

The Broader Implications

The 2025 G7 summit highlights a shifting global order. The Israel-Iran crisis underscores the challenges of managing conflicts without a dominant U.S. presence, while Trump’s trade war tests the resilience of alliances built on free trade. For Canada, hosting the summit is a chance to demonstrate leadership, but Carney’s decision to forgo a joint communiqué suggests a pragmatic approach to avoiding public disputes.

Economically, Trump’s tariffs could reshape global trade. The U.S., Mexico, and Canada’s free-trade agreement is in tatters, and allies like Japan face pressure to protect industries like autos. Politically, the summit exposes tensions within the G7, with leaders navigating Trump’s unpredictable style while addressing urgent crises.

What’s Next for the G7?

As the summit unfolds, all eyes are on Trump’s interactions. Will he use the platform to de-escalate the Israel-Iran conflict, as suggested by analysts like Josh Lipsky, or will he double down on tariffs, risking further economic turmoil? For Carney, success hinges on managing these tensions without alienating allies.

The G7’s ability to adapt to these challenges will shape its relevance. Founded in 1975 to address economic crises, the group now faces a test of its diplomatic and economic clout. Whether it can forge a path forward amid division remains an open question.

Thought Questions for Readers

1. How should G7 leaders balance their need to address the Israel-Iran crisis with the economic fallout from Trump’s tariffs?

2. Is Trump’s preference for bilateral deals a strategic advantage for the U.S., or does it undermine global cooperation?

3. Can the G7 remain a relevant force in global governance if its summits are overshadowed by individual leaders’ agendas?

Sources: Associated Press, Reuters, NPR, BBC, The New York Times, POLITICO, CBC News