G7 Trade Accord Remakes Global Commerce: Autos, Aerospace, and Supply Chains in Focus

The 51st G7 Summit, held this June in Canada, set the stage for sweeping policy shifts affecting trade flows between the advanced economies of North America, Europe, and Asia. High on the agenda were tariff reforms, with delegates securing a reduction of US-UK auto tariffs from 25% to 10% and a mutual agreement to eliminate certain aerospace levies. Despite these steps, steel tariffs and quota disputes remain unresolved, keeping some sectors in limbo.

Behind the scenes, a parallel effort to secure critical mineral supply chains is intensifying. G7 representatives have committed to building resilient procurement networks for rare earths and battery components—a bid to dilute China’s strategic control over essential resources powering green and digital transitions. Alongside tariff changes, these moves are set to impact competitiveness and production costs across the automotive, aerospace, and tech-manufacturing landscape.

While the Summit concluded without a unified public communiqué—reflecting ongoing strategic frictions—bilateral understandings on trade are expected to influence corporate strategies and investment flows throughout the year. Business leaders are attuned to the evolving contours of global commerce, particularly as policy recalibration at the world’s richest nations ripples across supply chains and capital markets.