QUEBEC CITY—Leaders from the world’s Group of Seven industrialized countries will start their summit Friday by dealing upfront with the elephant in the room: U.S. tariffs on steel and aluminum produced by its closest western allies.
Trade tensions between the Trump administration and its allies are set to dominate the two-day gathering, positioning President Donald Trump as the odd-man out among leaders and setting up arguably the most fractious G-7 meeting in recent history.
Tweets posted by Mr. Trump and French President Emmanuel Macron on the eve of the summit hinted at such a tone.
“The American President may not mind being isolated, but neither do we mind signing a 6 country agreement if need be,” Mr. Macron tweeted Thursday afternoon.
Mr. Trump made clear he has no plans to back down from his decision last week to impose tariffs on steel and aluminum produced by America’s closest trading and defense allies—among them Canada and Mexico, and European states such as Germany, France and the U.K.
A couple of hours after Mr. Macron’s tweet, Mr. Trump directed a tweet at him and Canadian Prime Minister Justin Trudeau. “Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers. The EU trade surplus with the U.S. is $151 Billion, and Canada keeps our farmers and others out. Look forward to seeing them tomorrow,” Mr. Trump said. The White House hours later said the president would leave the summit earlier than planned.
The meeting in La Malbaie, Quebec, on the shores of the St. Lawrence River, could prove to be unpredictable, depending on Mr. Trump’s temperament, foreign-policy analysts say. Statements from leaders ahead of the gathering warned blunt talk with Mr. Trump is likely and that the seven countries might fail to agree to a summit-ending communiqué, which would buck tradition at these types of gatherings.
“If Trump is in a really in foul mood he could want to blow up this summit,” said John Kirton, head of the G-7 research group at the University of Toronto.
Mr. Trudeau is scheduled to host a roughly 90-minute meeting on the economy Friday afternoon, and Canadian officials expect that will be the first opportunity to deal with U.S. trade tactics that have rocked its closest allies.
The Canadian prime minister has emerged as one of the most outspoken critics of the steel-and-aluminum tariffs, which threaten to hit hard in Canada, the biggest foreign supplier to the U.S. of both metals.
Mr. Trudeau and members of the Canadian cabinet have referred to the levies as “insulting,” “an affront” and “ridiculous.”
Canada has a lot to lose from heightening trade tension, as it is also engaged in talks to try to revamp the North American Free Trade Agreement, from which Mr. Trump has vowed to withdraw unless Ottawa and Mexico City agree to changes that address his concerns. Recently, Nafta talks have stalled over contentious issues such as the U.S. proposal for a so-called sunset clause, under which a country could terminate the pact every five years.
On Thursday, the Canadian leader defended his approach with Mr. Trump, saying his relationship with the U.S. president allows him “to be blunt and frank. ... I have consistently stood up for Canadian interests and consistently demonstrated where we disagree but done so in a polite and cordial context.”
Mr. Macron, who met with Mr. Trudeau in Ottawa this week, warned Mr. Trump that all western countries are bound to lose from a widespread trade skirmish. The European Union, Canada and Mexico have responded to the U.S. tariffs with levies of their own, targeting U.S. metals as well as other items such as whiskey, food products and lawn mowers.
At a joint press conference with Mr. Trudeau Thursday, Mr. Macron said maybe Trump “doesn’t mind that he’s being isolated” at the G-7 summit. Yet he said other countries would form their own bond.
“We have to remain resolute,” Mr. Macron said. The six G-7 members outside of the U.S. “have shared values. We represent an economic market that…represents true international strength today.”
Nevertheless, the leaders could decide to try to tamp down tensions, which could be led by German Chancellor Angela Merkel. Germany is one of the world’s largest exporters, and its economy is highly dependent on trade.
On Wednesday, Ms. Merkel pledged to raise Germany’s defense budget in a partial concession to the U.S., which has long objected to Germany’s relatively low military spending.
Mr. Trump had raised the pressure on Berlin in recent weeks by linking the issue to his attempt to rewrite the terms of the U.S.-Europe trade relationship.
“There is a chance to de-escalate, but it requires a willingness on the U.S. and other leaders at the tables,” said Meredith Lilly, an international affairs professor at Ottawa’s Carleton University and former foreign-policy adviser to the previous Canadian conservative government.
Write to Paul Vieira at paul.vieira@wsj.com and Kim Mackrael at kim.mackrael@wsj.com
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