G7 seeks unity as Trump's tariffs, Ukraine stance weighs on ties

By John Irish and Daphne Psaledakis

LA MALBAIE, Canada (Reuters) - Foreign ministers of leading Western democracies sought to show a united front in Canada on Thursday after seven weeks of rising tensions between U.S. allies and President Donald Trump over his upending of foreign policy on Ukraine and imposition of tariffs.

The Group of Seven ministers from Britain, Canada, France, Germany, Italy, Japan and the United States, along with the European Union, convened in the remote tourist town of La Malbaie, nestled in the Quebec hills, for meetings on Thursday and Friday that in the past have been broadly consensual.

U.S. Secretary of State Marco Rubio briefed his colleagues on talks on Tuesday with Ukraine in Jeddah, Saudi Arabia, where Kyiv said it was ready to support a 30-day ceasefire deal.

But officials said news of ambiguous comments by Russian President Vladimir Putin had broken during the session, leaving delegates unclear where things stood.

In the run-up to the first G7 meeting of Canada's presidency, the crafting of an agreed all-encompassing final statement had been tough, but diplomats said the atmosphere since had been positive and candid.

There was hope for an accord, something they said was vital to show unity. Should they not agree, they could opt for a chair statement from Canada that summarises what was discussed.

A U.S. decision to impose 25% tariffs on all steel and aluminium imports immediately drew reciprocal measures from Canada and the EU, underscoring the tensions.

"Under @POTUS's leadership, we are going to use forums like the G7 to counter our adversaries and stand by our allies. America First!" Rubio said on X.

Washington had sought to impose red lines on language around Ukraine and opposed a separate declaration on curbing Russia's so-called shadow fleet, a murky shipping network that eludes sanctions, while demanding more robust language on China.

A draft communique seen by Reuters, which diplomats said could still change and may not gain consensus, made no mention of possible new sanctions on Russia.

However, it emphasised the need for robust and credible security guarantees so that a ceasefire would be respected and that Ukraine would be able to deter and defend itself against future aggression.

The draft, substantially shorter than a statement in November that took aim at Russia, welcomed U.S. efforts in Jeddah and Ukraine's commitment to an immediate ceasefire. It urged Russia to follow "unconditionally."

It also includes tougher language on China, as requested by Washington, and language on Taiwan that will likely be encouraging to Taipei.

Since Trump's return to office on January 20 the United States has taken a less friendly stance with Ukraine and moved closer to Moscow, pushing for a quick deal to end the war and demanding European partners take on more of the burden without openly endorsing their role in future talks.

Two diplomats said there was also wrangling over language regarding Gaza and the Middle East, notably the notion of a two-state solution for the Israeli-Palestinian conflict, something the U.S. was resisting, and could ultimately stop an agreement.

A G7 statement on sidelines of the Munich Security Conference in February made no mention of a two-state solution.

The draft also warned Syrian's transitional authorities that targeted measures could be taken if what it called "massacres" against civilians in the coastal areas did not end.

TARIFFS TO 51ST STATE

Trump has suggested the G8 might be revived with the return of Moscow 11 years after its membership in the group was suspended over its annexation of Crimea.

Even Japan, heavily reliant on American security guarantees, has found itself in Trump's firing line. 

"It's very difficult. Maybe we should wait for the G8," said one European diplomat ironically. 

Nowhere have the difficulties for U.S. allies been more apparent than in Canada. 

Relations between the United States and Canada are at an all-time low, thanks to Trump's threats to impose tariffs on all imports from Canada and his constant musing about annexing the country to make it the 51st U.S. state.

He went further on Thursday, warning Europe that he could slap 200% tariffs on wine imports if it did not back down on measures against American whiskey.

Foreign Minister Melanie Joly said on Wednesday she would be on the offensive at the G7 and coordinate a response with the Europeans to put pressure on the U.S.

Joly and Rubio met on Thursday morning for bilateral talks, although diplomats said the question of tariffs had not been an issue in the joint sessions.

Joly did, however, thank Rubio for referring to Canada as a country in one of the sessions, according to two diplomats.

(Additional reporting by David Ljunggren; Writing by John Irish; Editing by Howard Goller and Toby Chopra)