Canada, as G7 chair, works closely with Japan and the European Union to ensure financial market stability after U.S. tariffs spark global market volatility.
Finance ministers discuss cooperative efforts to mitigate economic impact.
Canada, currently chairing the Group of Seven (G7) advanced economies, is stepping up efforts to ensure global financial stability in light of the market turmoil triggered by U.S. tariffs.
On Wednesday, Canada’s Finance Minister, François-Philippe Champagne, held discussions with Japan’s Finance Minister Katsunobu Kato and European Union Economy Commissioner Valdis Dombrovskis. The talks centered on the potential destabilizing effects of the U.S. administration’s recent tariff announcements.
Since President Donald Trump’s sweeping tariff measures on April 2, global financial markets have experienced significant upheaval. Stock markets have plunged, bond prices have fallen sharply, and U.S. Treasuries—traditionally seen as the safest investment—have faced increased selling pressure.
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In response, the U.S. administration announced a 90-day tariff pause, though it increased tariffs on China, further stirring market volatility.
Canada, alongside Japan and the EU, is working to coordinate responses aimed at stabilizing the financial system. Champagne emphasized the importance of these discussions, noting that Canada’s role as G7 chair will focus on addressing the impacts of U.S. tariffs and fostering international cooperation.
“We are committed to continuing dialogues with our G7 counterparts, especially regarding the effects and reactions to U.S. tariffs,” Champagne stated.
In previous instances of financial market stress, G7 finance ministers have taken coordinated action to calm markets and ensure the smooth functioning of the global financial system.
Japan has expressed its willingness to cooperate with the G7 and the International Monetary Fund (IMF) to address the market rout caused by U.S. tariffs, as confirmed by Japan’s top currency diplomat.
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Champagne’s discussions with the EU and Japan highlight the close collaboration among global powers to find solutions to the ongoing economic challenges.
In addition to these talks, Italy’s Economy Minister Giancarlo Giorgetti confirmed that non-U.S. G7 members have been working to address the situation and encourage the U.S. administration to adopt a more balanced approach.
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The White House and Treasury Department have not responded to inquiries regarding these efforts.
The issue is expected to be a key topic at the upcoming G20 finance meetings later this month, where leaders are anticipated to discuss the broader global economic impact of trade policies.
