President Donald Trump has set a deadline for dozens of countries to negotiate trade deals with the US, which will lead to higher tariffs unless agreements are reached before July 9. The move comes amidst tensions between Israel and Iran following an unprecedented strike on the country’s nuclear facilities.
While discussions over trade and security are expected to dominate the agenda at the upcoming G7 summit in Canada, world leaders will also be focused on finding ways to mitigate the impact of Trump’s tariffs on their economies.
The US has already imposed a 10% tariff on most countries’ exports, with an additional 50% tariff on steel and aluminum. The extra 25% tariff on cars is expected to take a toll on some foreign economies, including the UK, which reported a record decline in exports to the US in April.
Experts warn that global economic growth is likely to suffer due to reduced trade and uncertainty over tariffs. The World Bank has predicted a decade of slowest economic growth since the 1960s, citing Trump’s trade policies as a major catalyst.
The EU remains a wild card in trade talks, with Trump threatening to hike tariffs to 50% on EU exports unless agreements are reached. However, experts believe that any deal will need to involve significant concessions from both sides, particularly regarding VAT taxes, which the EU is unwilling to abandon.
With little certainty about whether countries will reach agreements before July 9, world leaders are set for a tense and challenging summit in Canada.
Source: https://edition.cnn.com/2025/06/15/economy/g7-trade-negotiations