Economic storm clouds hovering over Trump and global leaders

Aug 24, 2019

Under the threatening clouds of a global economic slowdown, President Donald Trump is confronting the consequences of his preference to go it alone

BIARRITZ, France — Under the threatening clouds of a global economic slowdown, President Donald Trump is confronting the consequences of his preference to go it alone, with low expectations that the leaders of the richest democracies can make substantive progress on an array of issues at their summit in France.

The meeting of the Group of Seven nations — Britain, Canada, France, Germany, Italy, Japan and the U.S. — in the beach resort town of Biarritz comes at one of the most unpredictable moments in Trump's presidency, when his public comments and decision-making increasingly have seemed erratic and acerbic of late.

Trump, who arrived Saturday, and his counterparts are facing mounting anxiety over the state of the world economy and new tension on trade, Iran and Russia . Trump, growing more isolated in Washington, might find a tepid reception at the summit as calls increase for cooperation and a collective response to address the financial downturn. White House aides claimed he engineered a late change to the summit agenda, requesting a working session on economic issues.

The economic warning signs, along with Chinese's aggressive use of tariffs on U.S. goods, are raising the pressure on Trump and his reelection effort. He intends to push allies at the summit to act to promote growth.

But Trump's credibility as a cheerleader for multilateralism is in doubt, given that he has spent the first 2½ years in office promoting an "America First" foreign policy that relying on protectionist measures. Traditional American allies have come to expect the unexpected from this White House; increasingly they are looking elsewhere for leadership.

Only hours before his arrival in Biarritz, Trump had threatened anew to place tariffs on French wine imports to the U.S. in a spat over France's digital services tax; the European Union promised to retaliate. That was the backdrop for a late addition to his summit schedule — a two-hour lunch with French President Emmanuel Macron outside the opulent Hotel du Palais.

The summit host said the two men were discussing "a lot of crisis" around the world, including Libya, Iran and Russia, as well as trade policy and climate change. But he also echoed Trump's calls for Europe to do more to address the global slowdown, including by cutting taxes. "When I look at Europe, especially, we need some new tools to relaunch our economy," Macron said.

Trump insisted that despite tensions, he and Macron "actually have a lot in common" and a "special relationship." In a later tweet, he said: "Big weekend with other world leaders!

Macron outlined details of a French plan to ease tensions with Iran by allowing Iran to export oil for a limited amount of time, said a French diplomat, who spoke on condition of anonymity in accordance with the presidency's customary practices. In exchange, Iran would need to fully put in place the 2015 nuclear deal, reduce tensions in the Persian Gulf and open talks. The plan was met with a skeptical reception by Trump, and the White House paid only a cursory mention of the Gulf in its official readout of the lunch meeting.

Trade was clearly on Trump's mind when he left for France. Trump declared that U.S. businesses with dealings in China are "hereby ordered" to begin moving home. There was no immediate explanation of what he expected or what authority he had to make that happen. He also imposed higher tariffs on Chinese imports.

Earlier, he had made light of a sharp drop in the financial markets in reaction to his latest trade moves. His tongue-in-cheek tweet speculated that the Dow's plunge could be tied to the departure of a lower-tier candidate in the race for the Democratic presidential nomination.

In recent days, Trump has sent mixed signals on a number of policy fronts. At one point, he moved to simmer the trade conflict with China in order to ease the impact on American consumers during the holiday shopping season. At another, he flip-flopped on the need for tax cuts to stimulate an economy that Trump publicly insists is rocketing.

Feeding Trump's anxiety, aides say, is his realization that the economy — the one sturdy pillar undergirding his bid for a second term — is undeniably wobbly.

Trump planned to press leaders about what can be done to spur growth in the U.S. and abroad, as well as to open European, Japanese and Canadian markets to American manufacturers and producers. Trump has imposed or threatened to impose tariffs on all three markets in his pursuit of free, fair and reciprocal trade.

The annual G-7 summit has historically been used to highlight common ground among the world's leading democracies. But in a bid to work around Trump's impulsiveness, Macron has eschewed plans for a formal joint statement from this gathering.

Last year's summit, hosted by Canadian Prime Minister Justin Trudeau, ended in acrimony when Trump felt he had been slighted by Trudeau after the president left the meeting.

Trump tweeted insults at Trudeau from aboard Air Force One as he flew to a summit with North Korea's Kim Jong Un. Trump withdrew his signature from the statement of principles that all seven nations had agreed to.

Addressing the global slowdown isn't the only pressing challenge that Trump has discovered requires joint action.

For more than a year, his administration has struggled with persuading European leaders to repatriate captured fighters from the Islamic State group. So far his entreaties have fallen on deaf ears.

Many of the summit proceedings will take place behind closed doors, in intimate settings designed for the leaders to develop personal relationships with one another. On Saturday night they dined at the Biarritz lighthouse, with commanding views of the Bay of Biscay.

Trump, White House aides said, was looking forward to a Sunday morning meeting with new British Prime Minister Boris Johnson , the brash pro-Brexit leader whose election he'd backed. The two spoke by phone on Friday, and Johnson said Saturday he would use the meeting to push Trump to de-escalate the American trade war with China.

Trump has scheduled individual meetings with several of his counterparts, including Macron, Trudeau, Merkel, Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi.

Other topics on the agenda will be the clashes between police and pro-democracy protesters in Hong Kong; Iran's renewed nuclear enrichment and interference with shipping in the Strait of Hormuz; and the Islamic State prisoners currently imprisoned by American-backed Kurdish forces in Syria.

___

Associated Press writer Jill Colvin in Washington contributed to this report.

___

Follow Miller on Twitter at http://www.twitter.com/ZekeJMiller and Superville at http://www.twitter.com/dsupervilleap

More News

How day of protests unfolded as disorder breaks out across France
Oct 17, 2026
How day of protests unfolded as disorder breaks out across France

Demonstrations across the country turned violent, with cars and buildings set alight and shops ransacked.

Trump Offers Putin Economic Relief in Hopes That Russia Will Return the Favor
Oct 17, 2026
Trump Offers Putin Economic Relief in Hopes That Russia Will Return the Favor

The Trump administration is ignoring the will of Congress and waiving new Russia sanctions amid fears that high energy prices will cost Republicans in next month’s elections.

M.L.B. Playoff Ads With Sydney Sweeney and Megan Fox Draw Backlash
Oct 17, 2026
M.L.B. Playoff Ads With Sydney Sweeney and Megan Fox Draw Backlash

Commercials promoting a gambling platform and endorsing male enhancement have rankled fans, and even athletes. Who is in charge?

Weak Links Start to Show in A.I. Borrowing
Oct 17, 2026
Weak Links Start to Show in A.I. Borrowing

Debt trouble at CoreWeave, Oracle and SoftBank raises questions about whether there are broader problems with the data center build-out.

The Reporter Who Exposed Elizabeth Holmes on Nathan Fielder’s Documentary
Oct 17, 2026
The Reporter Who Exposed Elizabeth Holmes on Nathan Fielder’s Documentary

Ms. Holmes handed the makers of “You Can See Everything” — and the rest of the world — a microscope with which to observe and dissect her lies.

Can Cereal Be Healthy? Big Companies Are Trying.
Oct 17, 2026
Can Cereal Be Healthy? Big Companies Are Trying.

As more Americans turn away from the snap, crackle and sugar, the industry is trying to capitalize on our current obsession with wellness.

Low-cost clinic helps pet owners with vet bills
Oct 17, 2026
Low-cost clinic helps pet owners with vet bills

RSPCA Medway West launches its clinic for the pets of people with low incomes.

States Are Stepping Up as the New Antitrust Enforcers
Oct 17, 2026
States Are Stepping Up as the New Antitrust Enforcers

With the Trump administration taking a relaxed approach, attorneys general around the country have ramped up their scrutiny of mergers.

Corporate Tax Revenue Falls Even as Profits Soar Under Trump
Oct 17, 2026
Corporate Tax Revenue Falls Even as Profits Soar Under Trump

The annual decline was about $70 billion. Companies are writing off billions in A.I. investments, taking advantage of tax cuts that President Trump signed into law.

It’s Time to Shop Medicare, and This Year, It’s Extra Important
Oct 17, 2026
It’s Time to Shop Medicare, and This Year, It’s Extra Important

Be sure to read your mail this fall — big changes to prescription drug plans and Medicare Advantage provider networks are coming, and could cost you more.

Weak Links Start to Show in A.I. Borrowing
Oct 17, 2026
Weak Links Start to Show in A.I. Borrowing

Debt trouble at CoreWeave, Oracle and SoftBank raises questions about whether there is broader trouble with the data center build-out.

Call for more food funding due to high living cost
Oct 17, 2026
Call for more food funding due to high living cost

Deputy Louise Doublet does not think the cost of living was considered in the ending of a trial.

Manage The Numbers

Manage The Numbers is the world’s fastest-growing finance news website, featuring the latest money and market news, along with in-depth analysis so you can make the best decision.

Newsletter