G7 Agrees to Support Ukraine... Cautious on Criticizing Trump's Tariffs

The finance ministers of the Group of Seven (G7) reaffirmed their intention to support Ukraine against Russia. However, they were cautious in criticizing U.S. President Donald Trump's tariff policies and agreed to continue monitoring non-market policies and practices that cause trade imbalances, targeting China.

The G7 finance ministers adopted a joint statement on the 22nd (local time) at the meeting held in Banff, Canada, from the 20th, expressing support for Ukraine.

The joint statement included content condemning Russia's ongoing brutal war against Ukraine and supporting the resilience of the Ukrainian people and economy. It stated, "The G7 remains unwavering in its support for Ukraine's territorial integrity, survival rights, freedom, sovereignty, and independence for a just and lasting peace."

The statement also warned that further sanctions against Russia could be considered if there is no progress in peace. Support for Ukraine's economic reconstruction will continue, and discussions were held on lowering the price cap on Russian crude oil, currently limited to $60 per barrel, to $50. The final agreement on the cap has not yet been announced.

The New York Times (NYT) evaluated this joint statement as an outcome amid the changed perspective of the U.S. on the Ukraine war since the Trump administration took office. It also mentioned that the expressions regarding Russia in the joint statement were relatively softened compared to a year ago.

The meeting was held amid heightened global economic uncertainty due to the Trump administration's tariff policies, but direct criticism related to this was not included in the joint statement. Instead, it stated, "International organizations have signaled that trade and economic policy uncertainty is high and burdens global growth," and "We acknowledge that economic policy uncertainty has peaked and will work to achieve more progress."

Regarding this, the NYT interpreted that although U.S. tariffs pose a significant threat to the global economy, G7 participants were cautious in their expressions to avoid provoking President Trump further.

Additionally, the joint statement included concerns and the need for response regarding North Korea's virtual asset theft activities. The statement expressed "serious concern that virtual asset theft and fraud activities by North Korea, etc., have reached unprecedented levels" and pointed out that "we must better understand and address the methods criminals use to launder funds along with these threats."

An agreement was also reached to respond to trade practices targeting China. However, China was not directly mentioned in the joint statement.

The joint statement did not include the traditional advocacy for free trade but instead included content that G7 member countries will continue to monitor 'non-market policies and practices' contributing to global trade imbalances.

Shin Hyun-bo, Hankyung.com reporter greaterfool@hankyung.com