Merkel: G7 agree on commitment to rules-based trade

Merkel-Trump G7 face-off photo headed for history books

Later on Saturday, after Canadian Prime Minister Justin Trudeau said all seven nations had signed a joint communique at the end of the summit, Trump angrily lashed out on Twitter, stating the US would not endorse the statement.

Just like Canada, the European Union is preparing counter-measures against U.S. tariffs on steel and aluminium imports, Merkel said.

"You can destroy an incredible amount of trust very quickly in a tweet", he said.

Trump appeared to acquiesce to Merkel and other leaders' positions, as the G-7 issued a joint statement to uphold "free, fair, and mutually beneficial trade" at the end of the two-day summit. Canada are hosting the leaders of the UK, Italy, the US, France, Germany and Japan for the two day summit, in the town of La Malbaie.

"As Canadians, we are polite, we're reasonable, but also we will not be pushed around", Trudeau said.

Elisabeth Wehling, a US-based political linguistics researcher, tweeted that the body language clearly pointed to Trump dominating the scene.

Asked if she was concerned that Trump could retaliate against European Union counter-measures by imposing tariffs on cars, Merkel said: "First of all, we'll try and see if we can prevent this".

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The other G7 leaders will meet without him for the rest of the day, discussing climate change and global development. Trudeau called the fact that the USA had based the tariffs on a national security reason "kind of insulting ".

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Mr Trump on Saturday threw the G-7's efforts to show a united front into disarray after he became angry with Mr Trudeau, and said he might double down on import tariffs by hitting the sensitive auto industry.

"The situation isn't very nice", Merkel said. Echoing a series of comments she's made about the erosion of US-European ties, Merkel expressed consternation about Trump's disavowal of the G-7's joint closing statement.

The US President addressed the subject of worldwide trade during an impromptu news conference at the summit Saturday, saying that he did not want to see other countries take advantage of the US over trade.

"It's going to change", he said.

Responding to the threat of new tariffs against the USA, he said: "Fair trade is now to be called fool trade".

"The national security pretext is absurd and frankly insulting to Canadians, the closest and strongest ally the United States has had. So, that is where the insult lies", she told reporters during a news conference in Quebec City.

He said USA farmers had been harmed by tariffs and other barriers and warned that USA trading partners would need to provide him with more favorable terms: "It's going to stop or we'll stop trading with them".

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