First working session of G7 finance summit begins

Highlighting the gap between the Trump administration and other countries, U.S. Treasury Secretary Steven Mnuchin said Saturday that the United States reserves the right to be protectionist on trade.

In theory, corporate tax cuts and deregulation along the lines proposed by Trump could address some of those problems in the world's largest economy.

The threat of a trade war is only one of several risks to the global economy, however.

"Our objective is to create opportunities for American workers to make things and export them", said Mnuchin, pointing to the administration's recent move to allow US farmers to sell beef to China.

Mnuchin briefed Aso on planned US tax measures, including a drastic corporate tax cut, announced last month by the administration of President Donald Trump.

In the bilateral talks, Padoan assured his USA counterpart the stock of non-performing loans (NPLs) burdening Italy's banking system would return to more 'physiological levels in short time, Ansa news agency quoted sources from te Italian G7 presidency as saying.

Populist anger at trade, globalization and manufacturing job losses fueled Trump's ascent to the US presidency, played a role in Britain's decision to exit the European Union, and propelled an antiglobalism candidate into the French presidential runoff vote earlier this month. Since taking office, his administration has issued a report that names two G-7 countries, Germany and Japan, for special monitoring due to their large trade surpluses with the US and has sparked a trade battle with Canada, another G-7 country, by imposing higher tariffs on imports of Canadian softwood lumber. It said Morneau emphasized that trade between the two countries was balanced and supported middle-class jobs.

Finance ministers from seven rich countries were wrapping up work Saturday on efforts to make growth more inclusive and to fight tax evasion and illicit money flows.

Hammond said he was at the meeting to ensure a fair deal for Britain.

Top finance officials from the Group of 7 advanced economies have gathered to hear about U.S. President Donald Trump's economic policies.

This meeting helps lay the foundation for the G7 meeting of global leaders that will take place later this month in which President Trump will attend. They'll also look for ways to promote growth and combat terrorist financing and tax avoidance by major corporations.

A global cyber attack infected tens of thousands of computers in almost 100 countries on Friday.

It "politically became impossible to sustain" the perception that workers are being taxed "and the big guys, the multinationals are not paying their fair share", he said.

When asked if G7 ministers were concerned about the potential for U.S. tax reform to cause the income gap to widen, Secretary Mnuchin said, "Reductions in the highest tax rates will be offset by reductions in deductions".

  • Zachary Reyes