G7 trade ministers set to meet but not discuss latest US tariff threat

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Paris: The G7 trade ministers are convening in Paris on Tuesday and Wednesday to address critical global commerce issues, though they have notably decided not to formally discuss President Donald Trump's recent threat to impose additional tariffs on European vehicles. 

While the French G7 presidency has set a specific four-priority agenda, the sessions are expected to be shadowed by the economic fallout from the closure of the Strait of Hormuz, which has severely disrupted global oil flows.

The ministers intend to focus on four primary strategic areas. First, they are seeking a collective response to industrial overcapacity a move largely seen as a reaction to international trade tensions regarding sectoral subsidies.

Second, the group is prioritizing economic security through the diversification and securing of critical mineral supplies, which are essential for manufacturing strategic goods like computer chips and electric vehicle batteries. 

Third, the ministers aim to address the ongoing paralysis of the World Trade Organization to make it better suited for modern challenges. Finally, they will discuss the ‘big problem’ of small e-commerce parcels, which often bypass customs duties and create unfair competition for local retailers.

Despite the official agenda, the tension surrounding U.S.-EU trade remains a significant undercurrent. Although a deal was struck last summer to cap U.S. tariffs on EU automobiles at 15 percent, President Trump’s recent threats of further hikes loom over the meeting. 

French officials have indicated a desire not to "overreact," suggesting that these specific tariff disputes will be handled through separate bilateral meetings between U.S. and EU representatives rather than within the formal G7 framework. This ministerial gathering serves as a precursor to the G7 heads of state summit scheduled for mid-June in Evian.

Photo Credits: AFP