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G7 commits to 'rules-based trading system' despite tensions with US G7 summit ends in disarray as Trump abandons joint statement
(35 minutes later)
All the G7 nations have agreed at their summit in Canada on the importance of a "rules-based trading system", despite tensions with the US. US President Donald Trump has retracted his endorsement of the joint communique issued at the end of the G7 summit, accusing Canada of "dishonesty".
The joint statement signed by US President Donald Trump and his counterparts comes amid a row over high US tariffs imposed this month on steel and aluminium imports. He said that other countries were imposing "massive tariffs" on the US.
The EU and Canada have taken steps to retaliate. The joint communique, advocating a "rules-based trading system", was reached despite tension over US tariffs on steel and aluminium imports.
Mr Trump says tariffs are needed to reverse America's trade deficit. Canadian Prime Minister Justin Trudeau vowed afterwards to press ahead with retaliatory tariffs on 1 July.
Soon after the joint statement was announced, the US president tweeted defiantly about not allowing "other countries to impose massive tariffs and trade barriers on its on farmers, workers and companies". Speaking at a news conference, he described as "insulting" Mr Trump's decision to invoke national security concerns to justify steel and aluminium tariffs.
However Canadian Prime Minister Justin Trudeau vowed to go ahead with retaliatory tariffs on the US after what he described as Mr Trump's "insulting" decision to invoke national security concerns to justify the levy on steel and aluminium. "It would be with regret but it would be with absolute clarity and firmness that we move forward with retaliatory measures on 1 July," Mr Trudeau said. "Canadians are polite and reasonable but we will also not be pushed around."
"It would be with regret but it would be with absolute clarity and firmness that we move forward with retaliatory measures on 1 July," he said. The EU said it would stick to the joint communique despite Mr Trump's decision.
"Canadians are polite and reasonable but we will also not be pushed around," Mr Trudeau added. 'Do not endorse'
Tweeting en route to his next summit in Singapore, Mr Trump said he had instructed US officials "not to endorse the communique as we look at tariffs on automobiles".
He said the move was based on Mr Trudeau's "false statements at his news conference, and the fact that Canada is charging massive tariffs to our US farmers, workers and companies".
He suggested Mr Trudeau was "very dishonest and weak".
Mr Trump had earlier signed the joint statement agreed by all the G7 nations despite the trade row.
He also tweeted defiantly about not allowing "other countries to impose massive tariffs and trade barriers on its farmers, workers and companies".
Canada talks tough
Jessica Murphy, BBC News, Quebec
Until just a few weeks ago, the relationship between Mr Trump and Mr Trudeau could have been called cordial. Despite differences between the two countries over trade - from tiffs over everything from softwood lumber and newsprint to the major renegotiation of the trilateral North American Free Trade Agreement - the two men tended to speak positively about each other.
No longer.
The recent US decision to impose metals tariffs on Canada, the EU, and Mexico was a turning point. Mr Trudeau, who had taken a conciliatory approach towards Mr Trump, began using a much harsher tone. Polls indicate Canadians support the tougher tone.
The fact remains that the two countries' economies are deeply integrated, with jobs on both sides of the border counting on smooth trade between the neighbouring nations.
Whether or not this new phase in the Canada-US relationship will allow some of the trade sticking points to be resolved is still to be seen.
What's happening in this G7 picture?
What is in the joint communique?
The G7 summit, held in La Malbaie, Quebec province, also covered such issues as relations with Russia.The G7 summit, held in La Malbaie, Quebec province, also covered such issues as relations with Russia.
What was agreed?
"What we did this weekend was come together and roll up our sleeves and figure out consensus language that we could all agree to on a broad range of issues," Mr Trudeau said.
In the communique, the group of major industrial nations - Canada, the US, the UK, France, Italy, Japan and Germany - agreed on the need for "free, fair, and mutually beneficial trade" and the importance of fighting protectionism.In the communique, the group of major industrial nations - Canada, the US, the UK, France, Italy, Japan and Germany - agreed on the need for "free, fair, and mutually beneficial trade" and the importance of fighting protectionism.
"We strive to reduce tariff barriers, non-tariff barriers and subsidies," they said."We strive to reduce tariff barriers, non-tariff barriers and subsidies," they said.
Other agreements reached include:Other agreements reached include:
What else did Trump have to say?What else did Trump have to say?
President Trump earlier told reporters he had proposed the idea of a tariff-free G7 to other leaders and described his talks with them as "extremely productive".President Trump earlier told reporters he had proposed the idea of a tariff-free G7 to other leaders and described his talks with them as "extremely productive".
"The United States has been taken advantage of for decades and decades," he continued, describing America as a "piggy bank that everyone keeps robbing"."The United States has been taken advantage of for decades and decades," he continued, describing America as a "piggy bank that everyone keeps robbing".
President Trump said retaliation tariffs from his allies were a "mistake" and warned that if it got as far as a trade war, then the US would "win that war a thousand times out of a thousand".President Trump said retaliation tariffs from his allies were a "mistake" and warned that if it got as far as a trade war, then the US would "win that war a thousand times out of a thousand".
He left the summit early to travel to Singapore for a landmark meeting with the North Korean leader Kim Jong-un to try to persuade him to give up the country's nuclear weapons.He left the summit early to travel to Singapore for a landmark meeting with the North Korean leader Kim Jong-un to try to persuade him to give up the country's nuclear weapons.
What are the tariffs?What are the tariffs?
On 1 June, the US imposed a 25% tariff for steel and 10% for aluminium on imports from the EU, Canada, and Mexico. Mr Trump said the move would protect domestic producers that were vital to US security.On 1 June, the US imposed a 25% tariff for steel and 10% for aluminium on imports from the EU, Canada, and Mexico. Mr Trump said the move would protect domestic producers that were vital to US security.
The EU then announced tariffs on US goods ranging from Harley-Davidson motorcycles to bourbon. Canada and Mexico are also taking action in retaliation.The EU then announced tariffs on US goods ranging from Harley-Davidson motorcycles to bourbon. Canada and Mexico are also taking action in retaliation.
Trump's price
Jessica Murphy, BBC News, Quebec
The US president has made it clear he believes the removal of tariffs against his G7 allies should come at a price - and he doesn't expect the US to pick up the tab.
His statements on the sidelines of the contentious G7 summit come just weeks after his administration slapped metals tariffs on Canada, the EU and Mexico, who quickly announced their own retaliatory measures.
Sticking points also remain in the North American Free Trade Agreement (Nafta) renegotiations between Canada, the US and Mexico, despite it being a key topic during the bilateral meeting between Mr Trump and Canadian PM Justin Trudeau.
The American leader said a three-country deal would only be possible with substantial changes, and reiterated his interest instead in forming separate two-way trade accords with Mexico and Canada - an interest Canada has made clear it does not share.
While the consensus-based G7 might well agree on the benefits of both free and fair trade between economic allies, it appears what that could look like it still up for debate.
What is the G7?What is the G7?
It is an annual summit bringing together Canada, the US, the UK, France, Italy, Japan and Germany, which represent more than 60% of global net worth between them.It is an annual summit bringing together Canada, the US, the UK, France, Italy, Japan and Germany, which represent more than 60% of global net worth between them.
Economics tops the agenda, although the meetings now always branch off to cover major global issues.Economics tops the agenda, although the meetings now always branch off to cover major global issues.
Russia was suspended from the group in 2014 because of its annexation of Crimea from Ukraine. On Friday, Mr Trump made a surprise call for Moscow to be readmitted but German Chancellor Angela Merkel said other members were against the idea.Russia was suspended from the group in 2014 because of its annexation of Crimea from Ukraine. On Friday, Mr Trump made a surprise call for Moscow to be readmitted but German Chancellor Angela Merkel said other members were against the idea.