The G7 Joint communique downplayed the issue of tariffs and committed to reducing global economic imbalances

The meeting of finance ministers and central bank governors of the Group of Seven (G7) concluded in Banff, Alberta, Canada on Thursday (May 22) and issued a joint communique. In the communique, the participating countries concealed their differences, promised to address the "excessive imbalances" in the global economy, and indicated that they might increase sanctions against Russia.

According to reports from Reuters and Agence France-Presse, G7 finance ministers said that the economic policy uncertainty sweeping the world is easing and vowed to further promote the stability process. G7 finance ministers also unanimously agreed that if Russia refuses to cease fire in Ukraine, they will "exert maximum pressure" on Russia, including further sanctions.

The extensive tariff measures of US President Trump have triggered global economic turmoil. The meeting in Canada this week is regarded as a test of whether the G7 member countries can overcome the tensions since Trump took office.

Representatives attending the meeting, including the governors of the G7 central banks, acknowledged that the negotiations faced challenges, including the persistent differences among countries on the issue of tariffs. However, in the final joint communique, the United Kingdom, Canada, France, Germany, Italy, Japan and the United States stated, "The uncertainty of economic policies has declined from its peak and we will work together to make further progress."

When it comes to the Russia-Ukraine war, the joint communique said: "If the two sides fail to reach a ceasefire agreement, we will continue to explore all possible options, including the option of maximum pressure, such as further increasing sanctions."

The joint communique condemned "Russia's continuous brutal war against Ukraine" and stated that any entity that supports Russia during the conflict will be prohibited from obtaining a contract for Ukraine's reconstruction.

The communique said: "We agree to cooperate with Ukraine to ensure that no country or entity that funds or supplies Russia's war machine benefits from Ukraine's reconstruction."

Canadian Finance Minister Philip Shang, who chaired the G7 Finance Ministers' meeting, described the meeting as "constructive and productive" and said it was necessary to reduce uncertainty to promote growth.

Shang Pengfei said, "We have found common ground in facing the most urgent global issues." I think this sends a very clear signal to the whole world... The G7 is united in its goals and actions.

But Bank of Canada Governor McClellan said at the closing press conference: "We are all clearly paying attention to the tariff issue. The communique emphasized that we are glad to see that the uncertainty has decreased, but we clearly still have a lot of work to do."

When leaving Banff, US Treasury Secretary Basent said that there were no major differences among the G7 countries and the meeting went smoothly. German Finance Minister Klinbel said that it is crucial to resolve the current trade dispute as soon as possible because tariffs have "imposed a heavy burden on the global economy."