At the G7 summit, Canadian Prime Minister Mark Carney and US President Donald Trump agreed to work towards a trade deal in one month. Border security and critical minerals were some of the key issues discussed. The two leaders have a different concept of how to move forward, with Trump leaning heavily on tariffs. However, Trump acknowledged that Carney’s more “complex” idea has potential.

• Tariff disruptions could moderate. The tone of the remarks between Carney and Trump earlier this week suggested that they are more confident about making a deal. The two leaders had a roughly 30-minute one-on-one meeting.
• The US has agreed to reduce tariffs on UK automobiles. The deal was announced at the G7 summit, where it was noted that more agreements could follow for the steel and aluminum industry.
• Trump also floated the idea of China joining the economic forum. He was responding to a reporter’s question. Trump said that it wouldn’t be a bad idea and would allow more world leaders to speak to each other at summits.
• The US Federal Reserve Board (Fed) makes its rate decision today and is widely expected to hold interest rates steady. Fed policymakers have highlighted that they are waiting for more certainty about trade policy. Trump has called for lower interest rates previously. Inflation rose to 2.4% in May from 2.3% in April.

The tone of the negotiations between the US and Canada seems to be collaborative. Steel, aluminum and automotive are some of the key industries where Canada would like to see tariffs removed. A trade deal was described as “achievable” by President Trump despite differences. The consensus to work towards a 30-day agreement was reached before Trump left the summit early to respond to an escalation in the Middle East conflict.

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