G7 trade talks focus on critical minerals as US-EU tariff tensions test unity

PARIS: Group of Seven trade ministers meeting in Paris on Wednesday sought to strengthen cooperation on securing critical mineral supplies, while fresh US tariff threats against European Union-made cars highlighted growing transatlantic tensions.

France said it wants concrete progress on critical minerals and rare earths during its G7 presidency ahead of a leaders’ summit in June, as Western economies look to reduce dependence on China’s dominant role in global supply chains.

“I believe we will make very concrete progress on rare earths and critical minerals, securing our supply chains and ensuring we are not held hostage by certain countries,” French Foreign Trade Minister Nicolas Forissier said as he arrived for talks.

France and other G7 members have warned that China’s control over key minerals used in electric vehicles, renewable energy, electronics and defence systems gives it the ability to distort global markets and undercut competitors.

The ministers said in a joint statement that they would seek to ensure that “attempts or threats to weaponize economic dependencies will fail,” underlining shared concerns over supply chain security.

Officials said there was broad agreement on reducing reliance on China, but differences remained over the approach, with separate proposals emerging from the United States and European Union.

Transatlantic tensions

Unity within the group was tested by comments from U.S. President Donald Trump, who said Washington would raise tariffs on EU-made cars to 25 per cent from 15 per cent, citing alleged non-compliance by Brussels with a trade agreement reached last year in Scotland.

Forissier said Trump’s remarks should be seen as a push to accelerate implementation of the so-called Turnberry agreement, expressing hope it could be finalised by the summer.

EU officials and lawmakers are working to finalise legislation linked to the deal, though internal divisions over safeguards have slowed progress.

German Economy Minister Katherina Reiche said she was in intensive talks with U.S. officials over the tariffs, as Germany’s export-dependent automotive sector faces pressure from weaker demand in China and rising costs.

EU Trade Commissioner Maros Sefcovic said discussions with U.S. Trade Representative Jamieson Greer had reaffirmed the need to honour commitments made under the Turnberry agreement.

“We both clearly concluded that it’s important to respect the deal from Turnberry from both sides,” Sefcovic said, adding that negotiations would continue.

The ministers also discussed global industrial overcapacity, particularly linked to China, and reform of the World Trade Organization, according to French officials.