November 29, 2021

After G7 Summit: Trump at odds with G7 leaders > 11.06.2018 Highlights

After G7 summit 2018

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Strong words, tense and anger highjacked the 2018 G7 summit. As analysts expected US allies fought against Trump’s decision to impose tariffs on imported steel and aluminium from EU, Canada and Mexico. Trump abruptly withdrew support for a joint G7 communique, after G7 summit, for the first time in G7 history.

Germany and France voiced criticism for this decision and accused the US President of destroying trust and acting inconsistently. However, it was not a surprise as Trump has already done this twice with the Climate agreement or the 2015 Iran deal.

In fact, the summit was more like a G6 vs 1 summit than a G7 one. Experts’ predictions that USA will be isolated as opposition against the States is almost unanimous were confirmed. Under the guise of his forthcoming summit with Kim Jong-un, Trump departed early from 2018 G7 Summit. He, then, announced that he does not support the joint G7 communique.

The tension between Canada, the hosting country, and its hitherto ally USA inevitably escalate into a diplomatic crisis and a tariff war.

The escalating trade fight between Washington and its closest allies overshadow Trump’s nuclear talks with North Korean leader. Talks with Kim Jong Un will take place in Singapore on Tuesday.

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MARKETS after G7 summit

The dollar traded lower against its major-traded rivals following tensions in G7 summit although all eyes are now on the US-N. Korea historic summit, scheduled for Tuesday.

The Canadian Dollar moved lower 0.3% against US dollar after G7 summit, amid concerns that Trump may withdraw from NAFTA.

The Sterling dropped against USD and the common currency as expectations that UK manufacturing data will show a recovery were not met.

The Euro edged up ahead of this week ECB meeting which may decide to start unwinding its massive bond purchasing programme. Euro gained 0.4%, climbing to a two-week high despite global trade war worries after G7 summit. At the same time, it also rose 0.5% against the Swiss Franc.

Oil prices eased as US and Russia output increase. Non-OPEC supply is to rise sharply in 2019 led by U.S. OPEC will meet its partners on June 22-23 in Vienna.

Sources: Reuters, Euronews, bbc.com

PLEASE NOTE The information above is not investment advice.