BANFF, Alta. — U.S. Treasury Secretary Scott Bessent faces a steep climb as he meets this week with his G7 counterparts in the heart of the Canadian Rockies. 

Bessent, who arrived at the Banff summit on Wednesday morning, comes to Canada against the backdrop of a U.S.-led trade war that affects every country represented at the gathering. That and Bessent’s recent threat of further punishing tariffs on nations that fail to reach bilateral agreements with the Trump administration. 

The unspoken question: can Bessent wrangle the other six finance ministers into submitting—even half-heartedly—to America’s proposed new global trade order?

What trade war?

So far, U.S. trade aggression has led an 8,000-pound elephant into the conference rooms of the Rimrock Resort Resort Hotel, where leaders seemed at a loss as to how to address it. Canadian Finance Minister François-Philippe Champagne, who spoke to reporters late Tuesday, sounded uncomfortable even uttering the word “tariff.” 

Still, Champagne confirmed that leaders had “started to discuss” fresh tariffs on Chinese low-cost goods, which would bring several major economies in line with the U.S., which last month removed “de minimis” exemptions on Chinese goods valued at less than US$800.

Champagne was set to meet one-on-one with Bessent later on Wednesday, according to the Canadian minister’s spokesperson Audrey Milette, who didn’t immediately confirm what was on the agenda for the talks.

Faults in the economy 

The summit, which also serves as a gathering of G7 central bankers, comes as the global economy appears headed for a slowdown, partly as a result of U.S. trade threats against China and other countries. 

U.S. President Donald Trump’s efforts to bulk up America’s manufacturing sector through tariffs has also raised fresh doubts about the strength of the U.S. dollar, which makes up a shrinking but still considerable portion of global currency reserves. On Friday, Moody’s downgraded America’s previously sterling credit rating, fanning concerns about the country’s rising debt load and weakened fiscal position. 

Over the two-day summit, Champagne and Bank of Canada governor Tiff Macklem are expected to address subjects like spurring global growth, fighting financial crime and better integrating payments services between countries.

Caught in a downpour

Reaching agreement on tariffs between the G7 allies would be a tougher nut to crack. When Champagne addressed reporters late Tuesday, he conveyed his usual sunny optimism in describing the stakes of the meetings, as well as the chances for G7 leaders to find common ground.

“The spirit around the table is constructive,” he said. “The spirit around the table is action. The spirit around the table is to send a strong message.”

Unfortunately for the minister, Alberta’s changeable spring weather had its own message. Just as Champagne began answering questions, a flash of spring hail swept in, pelting those gathered in the hotel yard.