Finance ministers and central bank governors from the G7 nations have declared a new push to fix what they describe as “excessive imbalances” in the global economy. Meeting in Banff, Alberta, Canada, the group issued a joint statement calling for stronger cooperation to counter non-market economic practices—without naming China directly, though the implications were clear.
The ministers expressed concerns over economic policies that lack transparency and fairness, singling out countries that use heavy state subsidies to manipulate market outcomes. These comments are widely interpreted as a veiled critique of China’s export-driven economy and its state-backed companies.
“We must protect the global economy from those who don’t play by the rules,” the communique stated. It emphasized the importance of a “level playing field” and hinted at a future crackdown on policies that distort international trade.
In addition, the G7 called for deeper analysis into market concentration and the resilience of global supply chains, recognizing that overly centralized systems leave nations vulnerable to disruptions.
Russia in the Crosshairs
The G7 members, which include the U.S., U.K., Canada, France, Germany, Italy, and Japan, also discussed tougher measures against Russia amid the ongoing war in Ukraine. European Commission Vice President Valdis Dombrovskis revealed that lowering the $60-per-barrel price cap on Russian oil was on the table. This move would aim to reduce Russia’s oil revenue even further, especially as its crude oil is currently trading below that level.
The ministers jointly condemned what they called Russia’s “continued brutal war” and promised to keep Russia’s sovereign assets frozen until the conflict ends and Ukraine is compensated for damages.
“If diplomatic efforts for peace continue to fail,” the G7 warned, “all options remain on the table—including escalating sanctions.”
Although a European official suggested the U.S. remains hesitant about lowering the price cap, Treasury Secretary Scott Bessent has made it clear that the U.S. is focused on protecting global economic stability and workers from China’s “unfair trade practices.”
Spotlight on E-commerce Loopholes
The G7 also highlighted a growing problem with “de minimis” shipments—small-value international packages that can avoid tariffs and taxes. These shipments are increasingly being exploited by global e-commerce platforms like Shein and Temu, leading to issues like customs overload and the smuggling of illicit goods. Currently, packages under $800 enter some G7 countries duty-free, a loophole the ministers suggest may need tightening.
In closing, the group called for stronger international coordination and transparency, aiming to shield the global economy from manipulation and ensure fair trade practices moving forward.
