In a meeting in British Columbia, Canada, the G7 finance chiefs have lashed out at the U.S. decision of imposing tariffs.
The French Finance Minister Bruno Le Maire demanded a “permanent and total exemption” from the tariffs warned of European countermeasures.
Le Maire said the U.S. decision “is unjustified and unjustifiable and will have dangerous consequences for global growth.”
Olaf Scholz, the German Finance Minister has warned of a united European action regarding the U.S. tariffs.
Olaf told Reuters: “Our response should be clear, strong and smart.”
The Canadian Finance Minister Bill Morneau warned the G7 meeting will be colored by the U.S. tariffs.
Minister Morneau said: “There will be some challenging discussions I’m sure. We are not saying there won’t be frictions. We’re not saying we won’t have strong words. We’re not saying we won’t be able to send messages.”
Meanwhile, the governor of Bank of England said the U.S. decision to target trade in goods was misplaced.
“There will be some challenging discussions I’m sure. We are not saying there won’t be frictions. We’re not saying we won’t have strong words. We’re not saying we won’t be able to send messages.”
Reuters quoted Governor Mark Carney as saying: “This focus on goods trade, bilateral goods is not the right focus in a hyperconnected world where most of the economic activity, most people work, most small businesses, most women work in the service sector.
“If we were to liberalize services to the same degree as we have liberalized (trade in) goods, these balances would be cut in half for the United States and for the UK,” Carney added.
International Monetary Fund Managing Director Christine Lagarde said a massively disrupted trade as a result of the imposed-tariffs will cause public trusts in the leaders.
IMF Managing Director Christine Lagarde added: “First of all, those who will suffer most are the poorest, the less privileged people, those who actually rely on imported goods to have their living.”