G7 leaders must not be afraid to reach agreements without US - Macron


Mr. Trump's top economic adviser, Larry Kudlow, told reporters on Wednesday that the US administration won't back down on the Trump trade and tariffs dispute with USA allies.

"I think it's fair to expect that any discussions on the global economy.in the current environment will quickly turn into a discussion about trade", a senior Canadian official said.

"The G7 is an opportunity for us to get together and have frank, open discussions among nations who have always been allies and friends", Macron told reporters, with Trudeau at his side. "The World Trade Organisation, for example, has become completely ineffectual".

Macron called on other G7 leaders not to water down a joint communique at the end of the summit, at the expense of shared values, simply in a bid to win Trump's signature, warning that a "G6 plus one" outcome was possible.

The meeting tomorrow and Saturday in Charlevoix, Quebec, will be the first chance G7 leaders have had to confront Mr Trump in person since USA tariffs on steel and aluminum imports from Canada, Mexico and the European Union were imposed last week. But the White House has signaled no change in plans.

"We will do what is necessary to protect the United States, its businesses and its workforce", he added.

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The United States is reportedly preparing to unleash another round of tariffs on Canada as retribution for its Can$16.6 billion (US$12.9 billion) in tariffs on U.S. goods.

A French presidency official said that while G7 members would raise their unhappiness over the tariffs with Mr Trump, they would not deliver an ultimatum that he drop them because the summit "isn't the place where you negotiate things like that".

Officials in Brussels, who are leading the member states' response, said nations had given broad support for a plan to set duties on €2.8bn (£2.5bn) of U.S. exports. With Trump, the danger with him is that he's so stupid that he doesn't know he's stupid. The member countries are: Canada, France, Italy, Japan, Germany, the United States and the Britain.

The meeting comes after a gathering of G-7 finance ministers concluded last week with a message of "concern and disappointment" to Trump from the other six countries.

Macron expressed support for Trump in his expected summit with the North Korean leader, Kim Jong-un, but also warned that the United States president's abrogation last month of a 2015 multilateral deal on the Iranian nuclear programme, cast doubt on the credibility of such agreements. "France and North Atlantic Treaty Organisation - this is ridiculous to think that they could be a threat to the United States' security", Trudeau said. "We can't wage a trade war between friends", Emmanuel Macron said, adding that he the countries have to remain polite as the United States is an ally and "we need them". His advisers have said he is trying to use the threat of tariffs as leverage to force other countries to lower barriers in a way that would allow more USA imports.