Donald Trump proposes 'tariff-free' G7

Donald Trump and Emmanuel Macron (right) at the summit. Pic/AFP

US President Donald Trump said he has proposed the elimination of tariffs in talks at the G7 summit in Canada, as the major industrial nations struggled to resolve differences on trade.

Trump said talks with fellow leaders were "extremely productive" despite tensions over his decision to impose tariffs on steel and aluminium imports. US allies were furious over the move, raising fears of a global trade war. "No tariffs, no barriers. That's the way it should be. And no subsidies. I even said, 'no tariffs'," Trump said, describing his meetings with fellow G7 leaders as positive "on the need to have fair and reciprocal trade".

"The US has been taken advantage of for decades and decades," he continued, describing America as a "piggy-bank that everyone was robbing". But he said he did not blame G7 leaders for the "unfair" trade deals - instead blaming his American predecessors.

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