G7 divides to G6 plus Trump over trade war threat

French President Emmanuel Macron listens during a joint press conference with Israeli Prime Minister Benjamin Netanyahu at the Elysee Palace in Paris

She also said the USA president wasn't entirely wrong in pressing Germany to increase defence spending.

"I have been Russia's worst nightmare", Trump claimed, "but with that being said, Russian Federation should be in this meeting".

Europe will implement counter-measures against USA tariffs on steel and aluminium just like Canada, German Chancellor Angela Merkel said on Sunday, voicing regret about President Donald Trump's abrupt decision to withdraw support for a G7 communique.

Over the course of his presidency, Trump has inflamed allies with his isolationist policies, including withdrawing the USA from the Paris climate accord and the global Iran-nuclear agreement.

Seven world leaders met Friday and Saturday in Charlevoix, Quebec for what is known as the G7 summit. In an echo of Cold War meetings on neutral ground, Austria is encouraging the United States to hold a summit in Vienna, a White House official said last week.

Later, the USA president tweeted: "Prime Minister Trudeau is being so indignant, bringing up the relationship that the U.S. and Canada had over the many years and all sorts of other things...but he doesn't bring up the fact that they charge us up to 300% on dairy - hurting our Farmers, killing our Agriculture!"

"Things are moving forward at the G7", Macron told reporters. Andrea Nahles, the leader of Ms. Merkel's coalition partner, the center-left Social Democrats, was openly and personally critical of Mr. Trump.

"The American President may not mind being isolated", Macron wrote on Twitter, "but neither do we mind signing a 6 nation agreement if need be".

France and Canada spoke out against this. She said that she still believes Trump shares the principled stance of the G7 on "many issues".

President Donald Trump's planned meeting with French President Emmanuel Macron at the G7 is being pushed back to late Friday afternoon after a delayed departure from the White House.

Expectations for a major breakthrough on trade at the summit, however, remain low, with U.S. allies focused on avoiding rupturing the G7, which in its 42-year history has tended to seek consensus on major issues.

And at the same time as western nations are at loggerheads, the United States president seems more at home with autocrats than with Washington s traditional allies.

Trump brought his hawkish trade czar, USA trade representative Robert Lighthizer, along for the trip.

Touching the thorny issue of Germany's relatively low defence spending, Merkel acknowledged that Trump's criticism was partly correct and that Berlin had to do more to reach NATO's goal of spending to 2 percent of economic output on defence. Investors are also concerned about the future of the North American Free Trade Agreement, which Trump has threatened to terminate.

If there was any hope the fissures might be repaired before Trump arrived, it was dashed on Friday morning when the President told reporters he was open to reinstating Russia's participation in the group, which was suspended after Moscow's incursion into Ukraine in 2013.

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