G7 2025 – Canada – Kananaskis

2025 saw Canada hosting the 51st G7 Summit in Kananaskis, Alberta. A G7 was first held there in 2002. Following the recent wave of elections in 2024 and flowing into 2025, including a federal election in Canada, the G7 Summit was attended by new heads of states from Germany, Japan, the UK, the US, and the host nation itself.

The key issues for Canada’s 7th Presidency of the G7 covered inclusive economies, artificial intelligence (AI), continued support for Ukraine, and climate change. Canada outlined three core missions that it hoped to secure coordinated action on at the G7 Summit. These were:

• Protecting our communities and the world: strengthening peace and security, countering foreign interference and transnational crime and improving joint responses to wildfires. 
• Building energy security and accelerating the digital transition: fortifying critical mineral supply chains and using artificial intelligence and quantum to unleash economic growth.
• Securing the partnerships of the future: catalyzing enormous private investment to build stronger infrastructure, create higher-paying jobs, and open dynamic markets where businesses can compete and succeed.

Canada extended invitations to the leaders of Mexico, South Africa, Australia, Ukraine, South Korea, and Brazil. Canada extended an invitation to India after much speculation given recent relations between the two countries. India and Canada have had strained relations since 2023, following the death of a Sikh separatist leader, Hardeep Singh Nijjar, which then Canadian Prime Minister, Justin Trudeau, attributed to Indian state agents. Trudeau had met with Modi on the sidelines of the previous G7 Summit in Italy, and Carney’s election has been regarded as a moment of reset in Canada-India relations. Some experts suggest that the other members of the G7 had pushed for the invitation to be issued, driven by their interests in deepening ties with New Delhi, irrespective of Canada-India bilateral relations. 

A busy election year for Canada means that there were fewer meetings during their Presidency, compared to the G7 Summit in Italy in 2024. Canada assumed the G7 Presidency in the midst of its own set of domestic troubles with a change in leadership in the Liberal Party following Justin Trudeau’s resignation, which triggered a national election. Donald Trump’s increasing antagonism towards Canada shook up the federal election, which saw Mark Carney emerge as the leader seemingly capable of squaring up against Trump, and securing another term for the Liberal Party. Carney outlined seven priorities in his mandate as Prime Minister, which included: establishing a new economic and security relationship with the United States, strengthening its collaboration with other trade partners, protecting Canadian sovereignty, and investments in people and businesses that ‘will build the strongest economy in the G7’. Prime Minister Carney is no stranger to the G7, having been the first person to serve as the head of two G7 central banks – first for Canada and then the United Kingdom during the Global Financial Crisis (GFC). 

The G7 Summit also took place in the relatively early months of a second administration by Donald Trump, Trump 2.0, who has instigated major tensions with the host nation and the other G7 partners with his “America first” policies. Trump has disrupted trade and security policies with some of the US’s closest post-war partners, creating rifts in a G7 that is used to taking relatively similar stances on these issues. In the face of Trump’s threats of tariffs, Carney noted that the G7 Summit in Canada would be crucial for determining the future path of the trade war.

As it stands, the US has remained an active participant in the G7 meetings, having participated in the G7 Foreign Ministers’ meeting on the margins of the Munich Security Conference in February, and US Secretary of State, Marco Rubio, attending a Foreign Ministers’ Meeting in March. US Treasury Secretary, Scott Bessent, attended a G7 finance ministers meeting held on the sidelines of the IMF and World Bank Spring Meetings in Washington in April, and was again present at a G7 Finance Ministers and Central Bank Governors’ Meeting in Banff, Canada, in May. Trump also attended the Leader’s Summit in Kananaskis, despite making an early departure. 

The US’s involvement in the G7 stands in contrast to its attenuated participation in the G20. The US was absent in the first G20 meeting that took place in Johannesburg, South Africa, in February 2025. US Secretary of State, Marco Rubio justified his absence by stating that, “[m]y job is to advance America’s national interests, not waste taxpayer money or coddle anti-Americanism”. US Treasury Secretary, Scott Bessent, did not attend a G20 Finance Minister and Central Bank Governor’s Meeting, although US Federal Reserve Chair Jerome Powell was present. The meeting also had absentees from the finance ministers of China, Japan, India and Canada. 

For the Canadian G7 Presidency, unity was more hard won and pragmatic and has raised questions on the Group’s ability to exercise collective and relevant influence on global security and economic issues. This is underscored by the G7’s declining economic power and the rise of non-Western powers. From this view, the maintenance of any enduring unity on key global issues during the Summit is a notable success even if it pales in comparison to some of the broader global challenges.

G7 Agenda and Summary

The Canadian agenda built on the priorities of its predecessor, Italy, covering issues that included the war in Ukraine and migration, and promoting economic growth. Given the actions of the Trump government, trade and security were salient issues on the G7 Agenda, compared to previous years. However, even as analysts and observers were expecting trade discussions to dominate talks at Kananaskis, increasing tensions between Iran and Israel put the Middle East in focus instead at the Leaders’ Summit and this was further amplified by Trump’s early departure. 

The divisions within the G7, particularly between the US and the rest of the group, was evident as the Summit did not produce a final Leaders’ Communique. The Communique is agreed upon by all G7 members and typically represents a collective commitment to shared values and cooperation on common issues by the Group. Instead, the outcome was more pragmatic and narrowly issue-orientated, as the G7 Leaders produced six joint statements on critical mineral supply chains; responsible AI adoption and promotion; investments in quantum technology; wildfire prevention and recovery; combating transnational repression; and combatting migrant smuggling. The Canadian Presidency also produced a Chair’s Summary of the Summit, which does not need agreement from G7 Members. Commentators noted how Kananaskis raised questions on the G7’s ability to shape global policies with Trump in power, as the US leader’s actions push back against some of the core values of democracy, open markets, and cooperation that form the foundation of the G7.

Security in the Middle East: On June 13th, days before the G7 Summit, Israel launched a surprise attack on Iran, targeting military and nuclear targets and killing scientists and military commanders. Iran responded by launching missiles on Israeli cities, and the two countries continued to launch strikes at each other, which included Israel hitting medical sites and Iran targeting industrial facilities. On 22 June, the US effectively involved itself in the Iran-Israel conflict when it struck nuclear facilities in Iran in Natanz, Fordow and Isfahan. Iran then responded with a missile that hit Al Udeid Base in Qatar, the US’s largest military base in the Middle East. Tehran had informed Doha of its intentions and there were no casualties in the strike. Israel’s bombing of Iran was motivated by two stated goals, according to Netanyahu: “decapitating the nuclear programme” and “regime change”.

The G7 Summit took place against the unfolding of these events in the Middle East, which took over conversations among leaders and saw President Trump leave Kananaskis a day early. The latter meant that Trump missed bilateral meetings with Ukraine President, Volodymyr Zelensky, Australian Prime Minister, Anthony Albanese, and Mexican President, Claudia Sheinbaum. Prime Minister Carney stated that he understood Trump’s departure, while analysts noted that the overall atmosphere was notably more relaxed without Trump, who brought unpredictability with him.

The G7 acknowledged the increasing tensions between Israel and Iran in a joint Leaders’ Statement. Here, G7 Leaders reiterated their commitment for peace and stability in the Middle East. The G7 Leaders affirmed that Israel has a right to defend itself, and that ‘Iran is the principal source of regional instability and terror’. This builds on the G7’s view of Iran’s nuclear capabilities which is that, ‘Iran can never have a nuclear weapon’.

The G7 called for a resolution of the Iranian crisis and ‘broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza’. As it stands, the G7’s stance on Gaza has been support for a permanent ceasefire and the unhindered provision of humanitarian aid to Gaza. The G7 also recognised ‘Israel’s inherent right to defend itself consistent with international law’ following the October 7 attacks from Hamas. 

Regarding support for Palestine, G7 members had remained vague in their commitments due to US resistance towards language around a two-state solution, resulting in a joint G7 statement following the G7 Foreign Ministers’ meeting that expressed the need for, ‘a political horizon for the Palestinian people, achieved through a negotiated solution to the Israeli-Palestinian conflict that meets the legitimate needs and aspirations of both peoples and advances comprehensive Middle East peace, stability and prosperity’.

However, recent developments have seen some G7 members take a more decisive stance towards support for Palestine. On July 24th, French President Emmanel Macron announced that France will recognise Palestine as a state. France is the first G7 member to recognise Palestine as a state, but the UK followed shortly after, with Prime Minister Starmer announcing the UK’s intention to recognise Palestine unless Israel committed to a peaceful resolution to the Israel-Palestine conflict. Canada became the third G7 member to announce its intention to recognise Palestine, joining a number of states who aim to formalise or reaffirm their recognition of Palestine as a state at a meeting of the Heads of State and Government during the high-level week of the 80th session of the UN General Assembly (UNGA 80) in September. The growing recognition of Palestine comes as a famine is unfolding in the Gaza Strip, and Israel continues attacking Palestinian territory.

Although 147 UN member states currently recognise Palestine as a state, many of the major Western powers do not. If France and the UK follow through on recognising Palestine as a state, this would mean that the US would be the only permanent member of the UN Security Council that does not recognise Palestine as a state. While this may not have a practical effect, it builds global pressure to implement a ceasefire and force a peaceful resolution in the Gaza Strip. Israel Prime Minister Netanyahu has responded by claiming that the decision to recognise Palestine “rewards Hamas’s monstrous terrorism and punishes its victims”. President Trump has similarly condemned the move by the UK and France. Analysts are sceptical of whether or not states will follow through on their words come September, and it is yet to be seen how this will affect the G7’s broader stance on security in the Middle East.

War in Ukraine: the G7 maintained its support for Ukraine and its long-term security in a joint statement released after a meeting between G7 Foreign Ministers on 12-14 March, 2025. G7 Members have called on the Russian government to accept a ceasefire deal, or face escalating action from the G7, including further sanctions, caps on oil prices, and additional support for Ukraine. Ukraine continues to seek robust security guarantees from the US and its allies. 

Ukraine President, Volodymyr Zelenskyy has participated in G7 meetings under the Canadian presidency and attended the Leader’s Summit. Although Trump’s missed meeting with President Zelenskyy at the June Summit had no major implications, Trump has made the G7’s responses to the war in Ukraine more complicated with his close relationship to Russia. Media outlets drew attention to the lack of a joint statement in support of Ukraine at the end of the Leader’s Summit, although the director of media relations for Prime Minister Carney later said that no statement had ever been planned. Nevertheless, President Zelenskyy left the Summit with additional aid to Kyiv.

Trade: Tensions have dominated relations between the US and the rest of the G7 Members following the start of Trump’s second term as the US leader. 

On the one side, Trump has butted heads with the G7 host this year in a string of events that involved threats of steep tariffs, and jibes that Canada should be regarded as the US’s 51st state. Trump amped up trade tariffs on imports from Canada and Mexico that he initially raised during his first term as President in 2016. For Canada, this included 25% tariffs on steel and aluminium imports and 10% on electricity. 

On the other side, Trump had hurled allegations at the EU that it was formed to ‘screw the United States’, and threatened ‘reciprocal’ tariffs of 25% on all EU imports. Prime Minister Donald Tusk of Poland, who holds the rotating presidency of the EU, affirmed that, ‘[t]he EU wasn’t formed to screw anyone’ and reiterated the mutual benefits of peace and trade across the Atlantic. European Commission President, Ursula von der Leyden, warned that the US tariffs will ‘trigger firm and proportionate countermeasures’ that would target US exports such as motorcycles, jeans, peanut butter, and whiskey. The EU delayed its counter-tariffs to re-think the US goods it aimed to target and to offer extra weeks for negotiations with Washington.. The EU would eventually secure a deal with the US that consisted of tariffs of 15% on most EU imports. This brings some stability to the markets of some of the largest trading partners in the G7, although EU members have expressed dissatisfaction with the deal, even as they recognise the necessity of it in order to stabilise global markets. With Canada hitting back with retaliatory tariffs, and the EU engaging in tit-for-tat tactics against Trump’s trade policies, the trade wars have  generated increasingly poor relations between the US and its allies as G7 meetings unfolded. Historically, the G7 has been unified through its commitment to the ideals of liberal democracy and free trade. Trump’s actions undermine these core values. The initial announcement of global tariffs in April led to stock market volatility, prompting the Trump administration to implement a 90 day pause.

Trump’s tariffs have come under legal challenge in the US. On 28 May, the US Court of International Trade (CIT) ruled that Trump’s tariffs were unlawful under the International Emergency Economic Powers Act (IEEPA), which he had used as the legal basis for the tariffs. The CIT’s ruling held that Trump had exceeded the President’s authority. The White House appealed the CIT’s decision through the US Court of Appeals for the Federal Circuit, which included a ‘stay of execution’ on the CIT’s ruling. This means that the tariffs would remain in effect until the outcome of the appeal. The Court of Appeal has affirmed that most of the tariffs are illegal but has left the tariffs in place acknowledging that the Administration will likely appeal the decision to the Supreme Court. The CIT’s ruling only addressed tariffs that were evoked under the IEEPA. It does not affect steel and aluminium tariffs that were implemented on the basis of national security, nor does it affect some retaliatory tariffs that were implemented under Trump’s first term and continued through Biden’s term. These tariffs largely target China.

 At the Kananaskis Summit itself, no progress was made on trade. While the expectations were always low on achieving any major breakthroughs, the Summit was still seen as an opportunity to advance negotiations between the US and its major partners. The UK had already struck a deal with the US ahead of the June Summit, while Japan secured a deal in July. The EU and the US would eventually agree, as noted above, to a trade deal in late July. 

Technology: Given Canada’s relative strength in AI and quantum technologies, with notable thinkers and leaders in these fields based in the country, these featured prominently on the Kananaskis agenda with joint statements dedicated to utilising AI for prosperity and deepening cooperation to promote the use of quantum technologies. 

Climate Change: Climate change did not feature in major talks at the Leader’s Summit, although an element of it emerged in the more specific issue of wildfire management. The Kananaskis Wildfire Charter formed one of the main joint statements released at the end of the Leader’s Summit in lieu of a Leader’s Communique. The Charter reflected a priority of particular interest to Canada, given the record-breaking number of wildfires the country has faced in the last few years.

Gender equality: Canada’s flagship programming under the G7 has been gender equality. In 2018, under Canada’s previous G7 Presidency, it established the Gender Equality Advisory Council (GEAC), an independent advisory body to provide inputs that integrate gender equality and gender-based analysis across all themes, activities and activities of the G7 Presidency. The GEAC has met every year since its founding, except for 2020. 

Apart from the GEAC being mentioned as a contributor to the recommendations in the final Chair’s Summary, there was little focus on gender equality in the joint statements and financial commitments from the host nation. Security and trade issues sidelined broader development and cooperation objectives that were usually a focus of the G7, which drew criticism from some of the G7’s own engagement groups. This perhaps shows a limitation of Canada’s approach of securing unity through more narrow issues, as some broader goals that are harder to both define and find consensus on can be deprioritised. 

Canada hands over the G7 Presidency to France, who will host the 2026 Leaders’s Summit in Evian-les-Bains.