Merkel open to European Union migration reform, cautious on eurozone

Photo shared by Angela Merkel hints at tension at G7

Photo shared by Angela Merkel hints at tension at G7

Just like Canada, the European Union is preparing counter-measures against USA tariffs on steel and aluminium imports, Merkel said.

Trump advisers Larry Kudlow and Peter Navarro nonetheless toed the presidential line, savaging Trudeau in Sunday show appearances over what Kudlow acknowledged were "things that the prime minister has said before, basically".

A photo of a seated President Donald Trump while the rest of the world leaders gather around him during the G7 summit has gone viral on social media.

Expectations for a breakthrough at the summit, however, are low, with US allies focused on avoiding rupturing the G7, which in its 42-year history has tended to seek consensus on major issues. Shinzo Abe of Japan looks on with a world-weary expression.

Merkel singled out Macron's hope for a jointly managed investment budget of "one or two percent of gross domestic product" in the single currency area as overambitious.

"The issue of tariffs can not be looked at in isolation, we must also think about issues such as subsidies", she said.

Other G-7 countries lobbied unsuccessfully at the summit for the U.S.to reverse its tariffs on imported steel and aluminum imports.

Turning to Russia, Merkel said she could imagine Moscow re-joining the G7 format at some point, but not before Russian President Vladimir Putin fully implements the peace plan for Ukraine by withdrawing his occupation forces back across to the Russian side of the border.

US President Donald Trump has continued his personal attacks against Canadian Prime Minister Justin Trudeau, tweeting that he "acts hurt when called out".

Trump was reportedly infuriated by Trudeau's comments during the news conference. "After a long day of work and very direct dialogue, we are actively seeking an ambitious agreement", an English translation of Macron's tweet reads.

Canada's Justin Trudeau and other leaders had given closing press conferences and announced a US-backed joint statement.

The low expectations could allow the leaders to cast any consensus as an achievement, especially given that Trump and most of the other G-7 leaders headed into the meeting appearing ready to fight. Speaking on the condition of anonymity a Canadian official told national broadcaster CBC that not only had Trudeau made these remarks prior to the meeting, on USA television last week, he had also informed Trump of his position before he went on air.

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