G7 targets economic imbalances and warns of tougher Russia sanctions

G7 finance leaders meeting in Canada pledged to tackle global imbalances and suggested tougher sanctions on Russia, while also taking aim at unfair economic practices widely attributed to China.

Finance ministers and central bank governors from the Group of Seven (G7) democracies pledged on Thursday to address “excessive imbalances” in the global economy and signaled that further sanctions on Russia remain on the table.

Meeting in the Canadian Rocky Mountains, the G7 officials expressed concern over non-market practices that threaten global economic stability. Although the communique did not explicitly name China, the language used aligns with frequent criticism of China’s state subsidies and export-led economic strategy.

“We agree on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency,” the joint statement said.

The G7 ministers also called for closer scrutiny of market concentration and global supply chain resilience. European Commission Executive Vice President Valdis Dombrovskis said discussions included proposals to strengthen sanctions on Russia, such as lowering the $60-per-barrel price cap on Russian oil. He noted that the price of Russian crude has dropped below that level, trading at about $64 per barrel.

A European official said the United States remains unconvinced about reducing the price cap. A U.S. Treasury spokesperson did not immediately respond to a request for comment.

The group strongly condemned what it described as Russia's "continued brutal war" against Ukraine and emphasized that sovereign Russian assets held in G7 countries would stay frozen until Moscow ends its military campaign and compensates Ukraine for damages.

The communique also raised concerns over the surge in low-value “de minimis” international package shipments. These shipments, often valued under $800, are reportedly being used to bypass customs duties and smuggle illicit goods. Chinese e-commerce platforms like Shein and Temu have been cited in this context for exploiting the U.S. de minimis threshold to ship goods tariff-free.

While the G7 maintained a united front on the importance of fairness and transparency in trade, differences persist on specific enforcement measures.

The Chinese embassy in Ottawa declined to comment.

The gathering concluded with a renewed commitment to safeguarding global economic security through stronger coordination and a rules-based international trade system.

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