The G7 Summit: What You Need To Know

President Donald Trump  set a combative tone ahead of Friday’s G7 meeting in Quebec. Trump’s nationalist policies, including tariffs on imported steel and aluminum, have made him unpopular among other G7 attendees, and Trump has been outspoken in his criticism of foreign leaders.

What Is G7?

For the past 44 years, leaders of the U.S., Canada, France, Germany, Italy, Japan and the U.K. have met annually to discuss economic policy. The G7 nations represent more than 60 percent of global net wealth and 46 percent of global nominal GDP, according to Credit Suisse.

Host and Canadian Prime Minister Justin Trudeau announced five themes for this year’s meeting back in December: investing in growth that works for everyone, advancing gender equality and women’s empowerment, building a more peaceful and secure world, preparing for jobs of the future and working together on climate change, oceans and clean energy.  

Frosty Tweets Sent Before Summit

Based on comments from this year’s attendees prior to the meeting, it’s unlikely to be as amiable as in years past. In recent days, Trump lashed out at Trudeau and French President Emmanuel Macron on Twitter.

“Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers,” Trump tweeted. “The EU trade surplus with the U.S. is $151 Billion, and Canada keeps our farmers and others out.”

Macron has responded to Trump’s criticism by implying that the majority of the G7 attendees would have no qualms about excluding the U.S. from any agreements.

“The American President may not mind being isolated, but neither do we mind signing a 6 country agreement if need be,” Macron tweeted.

Trudeau said Thursday: “American jobs are on the line because of [Trump’s] actions and because of his administration." 

On Friday morning, Trump took one last shot prior to departing for the G7 meeting.

"The European Union treats us very unfairly," Trump said while leaving the White House. "Canada [treats us] very unfairly." 

Trump has said he will be leaving the G7 meeting early Sunday prior to the discussions of climate change and ocean health.

The Market Impact

Investors should pay close attention to headlines from the G7 over the weekend and take a cautious approach heading into next week, said TD Ameritrade chief market strategist JJ Kinahan.

“You come back [from the G7 and North Korea summits] and you have the Fed after that,” Kinahan told Benzinga Friday.

“If there is bad news, the reason I'm cautious is because if things go bad with G7, let's say, does that mean people will buy bonds or sell bonds? I don't know. The relationships, you’re not sure how they’re gonna react. And you throw in the Fed on top of that. There's so many things that can change quickly this week. So keep your positions tight.”

The SPDR S&P 500 ETF Trust SPY traded mostly flat Friday ahead of the G7 metting.

Related Links:

Tariff Acrimony Helps Send Global Markets Lower As G-7 Leaders Meet

US Vs. Everybody? Tariffs Against North American, European Allies Spark New Trade War Fears

White House photo by Joyce N. Boghosian.