G7 2025 – Canada – Kananaskis
2025 will see 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 will be 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 will cover inclusive economies, artificial intelligence (AI), continued support for Ukraine, and climate change. The T7 Summit, which takes place prior to the Leader’s Summit, but offers inputs to negotiations for the final Leader’s Declaration, confirms these priorities, with Task Forces dedicated to Transformative Technologies – AI and Quantum, Digitalization of the Global Economy, Environment, Energy and Sustainable Development, and Global Peace and Security. Many of these issues will likely feature on the main agenda of the Leaders’ G7 Summit in June.
Thus far, Canada has extended invitations to the leaders of Mexico, South Africa, Australia, Ukraine, and Brazil. After much speculation on whether Canada would extend an invite to India, who has been invited to the G7 Leader’s Summit since 2019, it was confirmed in early June that Prime Minister Carney has invited Prime Minister Modi to Kananaskis. 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 moment of reset in Canada-India relations, although it is yet to be seen how relations between the two states will unfold. Some experts suggest that the other members of the G7 had pushed for the invite, driven by their interests in deepening ties with the country, irrespective of Canada-India bilateral relations. Sources suggest that Modi’s attendance was conditioned on India’s participation in the ongoing investigation into the shooting of Singh Nijjar. Carney’s invite has drawn criticism from Sikh activists and one of the country’s opposition parties, the New Democratic Party. Prime Minister Carney defended the invite by stating that, ‘there are certain countries that should be at the table for [G7] discussions’. President Sheinbaum of Mexico has also been invited but is yet to confirm her attendance at the Leaders’ Summit.
A busy election year for Canada means that Canada will likely have held 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 insistence on Canada becoming the US’s 51st state, and increasing antagonism towards Canada shook up the federal election, which saw Mark Carney emerge as the leader capable of squaring up against Trump, and securing another term for the Liberal Party. Carney has 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. It is likely that Ottawa will use the G7 to advance its own domestic priorities, particularly strengthening Canada’s international relationships.
The G7 Summit also takes place in the relatively early months of a second administration by Donald Trump, who has instigated major tensions with the host nation and 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 the most recent 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.
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.
As the Canadian G7 Presidency ramps up towards the Summit in mid-June, it appears that unity will need to be more hard-won and pragmatic if the G7 hopes to continue to exercise collective influence on global security and economic issues. Indeed, the maintenance of any enduring unity on key global issues during the Summit would be a notable success.
Developing G7 Agenda
The Canadian agenda will continue to build on the priorities of its predecessor, Italy, including the war in Ukraine and migration. Given the actions of the Trump government, trade and security are expected to be more salient issues on the G7 Agenda, compared to previous years. Experts have expressed concerns over the sidelining of other issues such as climate change and AI, in light of ongoing tariff discussions.
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. In that same year, Canada had invested around $3.8 billion dollars in education for women and girls in crisis and conflict situations. The GEAC has met every year since its founding, except for 2020. Canada will likely maintain a prominent position for gender equality on the agenda notwithstanding the Trump administration’s distaste for such approaches.
War in Ukraine: the G7 maintained its support for Ukraine and its long-term security in a recent joint statement released after a meeting between G7 Foreign Ministers on 12-14 March, 2025. Ukraine President, Volodymyr Zelenskyy has participated in G7 meetings under the Canadian presidency and confirmed his attendance at the Leader’s Summit.
The G7 voiced their support of ongoing negotiations between the US and Ukraine and Saudi Arabia to secure a ceasefire deal. G7 Members have called on the Russian government to accept the ceasefire, 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. Observers note that part of the ceasefire negotiations have been attempts to repair the relationship between Ukraine and the US after the public dispute between Zelenskyy and Trump and Vance in February, which hurt both Ukraine’s alliance with the US and cast doubt on the US’s commitment to the EU’s collective security.
Security in the Middle East: as it stands, the G7 reiterates their support for a permanent ceasefire and the unhindered provision of humanitarian aid to Gaza. While the G7 recognised ‘Israel’s inherent right to defend itself consistent with international law’ following the October 7 attacks from Hamas, Israel’s decision to end the ceasefire with air strikes on March 18th and its continued denial of humanitarian aid delivery, increasingly render Israel’s actions towards Gaza and the Palestinians as detrimental. The ‘E3’ consisting of the UK, France, and Germany called for the immediate resumption of the ceasefire, while Italian Prime Minister, Georgia Meloni, stressed that the Israeli airstrikes jeopardized the long term objectives to release the hostages and restore humanitarian assistance. Israel had consulted the US ahead of the airstrikes.
Regarding support for Palestine, G7 members remained vague in their commitments due to US resistance towards language around a two-state solution, resulting in a joint G7 statement following the 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’.
Trade: Tensions dominate the US and the rest of the G7 Members following the start of Trump’s second term as the US leader has leaned into trade policies that undermine its relationship with its allies.
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 is amping up trade tariffs on imports from Canada and Mexico that he initially raised during his first term. For Canada, this includes 25% tariffs on steel and aluminium imports and 10% on electricity. This was initially met with a 25% surcharge on electricity exports from the Canadian province of Ontario, which led to further threats by Trump to increase US tariffs to 50% and Ontario backing down from its surcharge. Canadian Foreign Minister, Melanie Joly, has maintained that Canada can win the trade war given that it is the ‘biggest customer of the US’, while Prime Minister Mark Carney has suggested removing internal trade barriers in Canada to offset the US tariffs.
On the other side, Trump has hurled allegations at the EU that it was formed to ‘screw the United States’, and threatened ‘reciprocal’ tariffs of 25% on all EU imports. The US President has also suggested that it would drop security guarantees for its allies in Europe. 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. Ahead of the wholesale US tariffs on steel and aluminium, 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. As it stands, the EU has delayed its counter-tariffs to re-think the US goods it aims to target and offer extra weeks for negotiations with Washington. If the EU counter-measures get implemented, Trump has threatened to follow-up with a 200% tariff on all alcoholic products from the EU.
Trump has posited the tariffs as protection for local jobs and production, however, it is more than possible these measures may impose high costs in the domestic market and generate significant uncertainty in the US-Canada-Mexico economies.
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 continue to unfold. 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 which would expire at the beginning of July. The Trump Administration has maintained that the tariffs will remain in place after the 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 stay of execution was granted and legal proceedings will continue from 9-18 June. The CIT’s ruling only addresses 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.
The decision to stay the CIT’s ruling is one of three court cases that Trump’s tariffs face. A Washington Court ruled similarly to the CIT, while a California court dismissed another challenge to Trump’s tariffs on the basis of procedure. These cases create further uncertainty that will likely remain until the case reaches and is decided by the Supreme Court.
Inclusive economies: Under its current Presidency, Canada has highlighted ‘building economies that benefit everyone’ as one of its common priorities that it will work with other G7 members to advance. This connects to the previous Canadian Presidency in 2018, where ‘investing in growth that works for everyone’ was one of the key themes that Canada used to advance domestic and international priorities, and featured prominently in the final Leaders’ Communique. During the 2018 Summit in Charlevoix, ‘growth that works for everyone’ was taken to mean investing in infrastructure to create quality jobs, growing the middle class, addressing income inequality, and ‘removing the barriers that keep our citizens, including women and marginalized individuals, from participating fully in the global economy’.
These areas of focus are consistent with the G7’s overall priorities with regards to promoting economic growth. In its previous Presidencies, the G7 has given particular attention to growth that benefits everyone when discussing transitioning to net-zero economies and growing the digital economy by committing to ensuring that sustainable growth is created and that no one is left behind by any disruptive changes. Given that gender equality has been a major policy focus in Canada’s engagements with the G7, it is likely that this will feature prominently in discussions around economies that benefit everyone, alongside the G7’s focus on digital and net-zero economies.
Insofar as the ongoing trade wars may impact economies in North America and Europe by injecting uncertainty in regional economies, this undermines the G7’s commitment to fostering economies that benefit everyone and fostering equitable trade systems, as outlined in the G7 Leaders Communique for the Italian Apulia Summit in the previous year. It is yet to be outlined how the Canadian Presidency would hope to maintain momentum in the G7 on inclusive economies with tariffs dominating the priorities of individual G7 Members.
Technology: In the previous Leader’s Communique, the G7 highlighted AI as playing a crucial role in promoting progress and development, but stresses that the ethics of AI should be directed towards a human-centred digital transformation that is in line with shared democratic values and respect for human rights. Given Canada’s relative strength in AI and quantum technologies, with notable thinkers and leaders in these fields based in the country, it will likely leverage this position to advance G7 commitments to robust and effective AI governance. Other technology related issues that will be discussed among G7 members will likely be the digitalisation of the global economy and data governance.
Climate Change: In the previous Climate, Energy and Environment Ministers’ Meeting under the 2024 Italian G7 Presidency, Member states recognised the ‘triple global crisis of climate change, biodiversity loss and pollution’, that poses a threat to sustainable development. Major policy areas that will likely be points of focus and contentious negotiation include energy security; financing climate and biodiversity and transformation of the International Financial Architecture; sustainable, inclusive and resilient infrastructure; and industrial decarbonization, sustainable trade and investment.
Climate change efforts by the G7 will also form part of the G7’s deepening engagements with the African continent through clean energy investments. This will add to the discussions the Group has had with African states on increasing cooperation and through diversifying resource access and addressing migration issues.